Accounting Chapter 10

Treasury stock

The corporations own stock that it acquired

Angel investors

Wealthy individuals in the business community willing to risk investment funds on a promising business venture

Limited liability

shareholders can lose no more than the amount they invested on the company

Issued stock

shares actually sold

Authorized stock

shares available to sell

Redeemable

shares can be returned to the corporation at a predetermined price

Outstanding stock

shares held by investors

Cumulative

shares receive priority for future dividends if dividends are not paid in a given year

Paid in capital

the amount invested by stockholders

Retained earnings

the earnings not paid out in dividends