ACCT 2121 Ch 11 Vocab

treasury stock

Corporation's own stock that has been reacquired by the corporation but not retired.

cumulative feature

Preferred stockholders have a right to receive current and unpaid prior-year dividends before common stockholders receive any dividends.

controller

The chief accounting officer.

deficit

A debit balance in retained earnings.

stock dividend

A pro rata distribution of the corporation's own stock to stockholders.

Preemptive right

Enables stockholders to maintain their same percentage ownership when new shares are issued.

payout ratio

Measures the percentage of earnings distributed in the form of dividends to common stockholders.

par value

The amount assigned to each share of stock in the corporate charter.

legal capital

The amount that must be retained in the business for the protection of creditors.

declaration date

The date the board of directors formally declares a dividend.