Match the terms with the definitions.
-An agreement in which a buyer contracts to buy shares of a corporation at a specific price.

Question

Quizplus · Accepted Answer

A capital stock subscription is an agreement in which a buyer contracts to buy shares of a corporation at a specific price.

Answer: B
 The board of directors is a group of individuals elected by shareholders to oversee the management of a corporation.

Answer: C
 Bylaws are a set of rules and regulations that govern the operations of a corporation.

Answer: D
 Premium refers to the amount paid by an investor, above the par value, to purchase a stock.

Answer: F
 Preferred stock is a type of stock that gives shareholders preferential treatment, typically in the form of priority in receiving dividends or assets in the event of liquidation.

Answer: G
 Paid-in capital refers to the amount of capital that a corporation has received from investors in exchange for shares of stock.

Answer: H
 Cumulative preferred stock is a type of preferred stock that entitles shareholders to receive any missed dividends in the future before common shareholders receive any dividends.

Answer: I
 Dividends are payments made by a corporation to its shareholders as a distribution of earnings.

Answer: J
 Double taxation refers to the practice of taxing both the corporation and its shareholders on the same income.

Answer: K
 Outstanding stock refers to the total number of shares of a corporation's stock that are currently owned by investors.

Answer: L
 No-par stock is a type of stock that does not have a par value assigned to it.

Match the Terms with the Definitions