| A | B |
|---|
| corporations | are legally distinct from their owners and are treated as if they were individuals |
| articles of incorporation | application for a state license |
| corporate charter | a license that permits the formation of the new corporation |
| board of directors | is the corporation's key decision-making body |
| stock | represents ownership of the firm |
| shares | ownership is issued in portions |
| dividends | profits paid to the shareholder, a return or profit on your investment |
| common stock | provides shareholders with a voice in how the company is run |
| preferred stock | provides guaranteed dividends but does not guarantee a say in how company is run |
| corporate bond | is a certificate issued by a corporation in exchange for money borrowed from an investor |
| principal | actual amount of money that was borrowed |
| interest | amount that the borrower must pay for use of funds |
