| A | B |
|---|
| Corporation | An artificaial legal entity that has rights and responsibilities of its own |
| Stockholders | An owner of a corporation |
| Stock | Shares of ownership in a corporation |
| Stock Certificate | A document showing how many shares of corporation stock are owned |
| Double Taxation | The situation in which both the earnings of a corporation and the distribution of those earnings made to stockholders are taxed |
| Articles of Incorporation | An application to organize a business as a corporation made to appropriate state officials |
| Charter | The approved articles of incorporation |
| Board of Directors | A group of individuals, elected by stockholders. who govern and are responsible for the affairs of the corporation |
| Preemptive Right | Each stockholder's right to purchase additional shares of new stock issues in proportion to her or his present holding |
| Authorized Capital Stock | The maximum number of shares of stock a corporation may issue according to its charter |
| Issued Shares | Those shares of stock that the corporation has sold to stockholders |
| Outstanding Stock | STock that is actually in the hands of stockholders |
| Common Stock | A title given to stock when only one class is issued by the corporation |
| Par-Value Stock | Stock that has a specific value printed on the stock certificate |
| No-Par Stock | Stock that does not have a value printed on the stock cerificate |
| Preferred Stock | Stock that has prferences over common stock, usually in relation to dividends |
| Stockholders' ledger | A subsidiary ledger or supplementary record showing the name and address of each stockholder and the number of shares owned by each |
| Legal Capital | The minimum amount of contributed capital that a corporation must keep in the business |
| Stated Value | The value assigned to a share of no-par stock by the board of directors |
| Stock Subscription | The process of selling stock to investors on an installment basis |
