Chapter 21 Key Terms

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Flashcards on Chapter 21 Key Terms, created by Dan Huber on 11/10/2022.
Dan Huber
Flashcards by Dan Huber, updated more than 1 year ago
Dan Huber
Created by Dan Huber about 2 years ago
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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 (repayment time).
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 (EPS) Annual Earnings / Total # of Shares Outstanding
Mutual Fund Investors buy shares in the fund's portfolio (group of stocks and/or bonds)
Net Asset Value (NAV) 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.
Priced Earnings Ratio (PE 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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