| A | B |
|---|
| Corporation | An organization with the legal rights of a person and which may be owned by many people. It is an artificial being, invisible, intangible, and existing only in contemplation of the law. |
| Board of directors | A group of persons elected by the stockholders to manage and be responsible for the affairs of the corporation |
| Stockholders | A group of persons elected by the stockholders to manage and be responsible for the affairs of the corporation |
| Articles of incorporation | A written application requesting permission to form a corporation |
| Charter | The approved articles of incorporation |
| Stock | Shares of ownership in a corporation |
| Stock certificate | Legal document issued when full payment is received for stock; usually states the issue date, certificate number, number of shares, and name of the stockholder |
| Organization costs | Fees and other expenses of organizing a corporation |
| Double taxation | Term used to indicate that corporate earnings are taxed once at the corporate level and then again at the stockholder level |
| Capital stock | Total shares of ownership in a corporation |
| Preferred stock | Stock that gives preference in earnings and other rights; pays dividends at a stated rate to preferred stockholders before common stockholders |
| Common stock | Stock that provides no special preferences; pays funds to common stockholders after preferred stockholders in the event of bankruptcy; no stated rate for dividends |
| Par value | Value assigned to a share of stock and printed on the stock certificate |
| Par value stock | A share of stock that has an authorized, specific value printed on the stock certificate |
| No-par value stock | A share of stock that does not have an authorized, specific value printed on the stock certificate |
| Stated value stock | No-par-value stock that is assigned a value by a corporation; similar to par value stock except the value is not printed on the stock certificate |
| Declaring a dividend | Action by a board of directors to distribute corporate earnings to stockholders |
| Date of declaration | The date on which a board of directors votes to distribute a dividend |
| Date of record | The date that determines when stockholders are to receive dividends |
| Date of payment | The date on which the dividend is paid |
| Treasury stock | Stock that was issued and then reacquired by the corporation |
| Bond | A printed, long-term promise to pay a specified amount on specified date and to pay interest at stated intervals |
| Bond sinking fund | An amount set aside to pay a bond issue when due |
| Retiring a bond | Paying the amounts owed to bondholders for a bond issue |
