Chapter 21 Key Terms

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Chapter 21 Vocab
Eli Southard
Flashcards by Eli Southard, updated more than 1 year ago
Eli Southard
Created by Eli Southard over 1 year ago
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Question Answer
Bond Yield Total annual interest divided by total cost
Bonds Written promise by a company that borrows money usually with fixed-interest payment until maturity
Cash Dividend Cash distribution of company's profit to owners of stock
Common Stocks Units of ownership called shares. Has voting rights
Cumulative Preferred Stock Holders of preferred stock must receive current year's dividends and any dividends in arrears before any dividends are paid out to the holders of common stock
Discount Amount bond sells below $1,000
Dividends Distribution of company's profit in cash or stock to owners of stock
Dividends in arrears Dividends that accumulate when a company fails to pay cumulative dividends to preferred stockholders
Earnings per share Annual Earnings/ Total # of shares outstanding
Mutual Fund Investors buy shares in the fund's portfolio
Net Asset Value The dollar value of one mutual fund share; calculated by subtracting current liabilities from current market value of fund's investments and dividing this by the number of shares outstanding
Odd Lot Less than 100 shares
Price Earnings Ratio Closing price per share of stock divided by earnings per share
Preferred Stock Type of stock that has a preference regarding a corporation's profits and assets. Has no voting rights
Premium Periodic payments that one makes for various kinds of insurance protection
Round Lot Multiple of 100 shares
Stock Certificate Evidence of ownership in a corporation
Stock Yield Dividend per share divided by the closing price per share
Stockbrokers People who with their representatives do the trading on the floor of the stock exchange
Stockholders One who owns stock in a company
Stocks Ownership shares in the company sold to buyers, who receive stock certificates
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