Match each of the following terms with the correct definition: additional paid-in capital issued and outstanding retained earnings treasury stock authorized share capital par value Correct Definitions: The price at which each share is recorded in the company’s books Held by investors Cumulative amount of profits that have been plowed back The difference between the amount of cash raised by an equity issue and the par value of the issue The maximum number of shares that can be issued without shareholder approval The amount that the company has spent buying back stock that it has not subsequently resold
Match each of the following terms with the correct definition: additional paid-in capital issued and outstanding retained earnings treasury stock authorized share capital par value Correct Definitions: The price at which each share is recorded in the company’s books Held by investors Cumulative amount of profits that have been plowed back The difference between the amount of cash raised by an equity issue and the par value of the issue The maximum number of shares that can be issued without shareholder approval The amount that the company has spent buying back stock that it has not subsequently resold
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Match each of the following terms with the correct definition:
- additional paid-in capital
- issued and outstanding
retained earnings treasury stock - authorized share capital
- par value
Correct Definitions:
- The price at which each share is recorded in the company’s books
- Held by investors
- Cumulative amount of profits that have been plowed back
- The difference between the amount of cash raised by an equity issue and the par value of the issue
- The maximum number of shares that can be issued without shareholder approval
- The amount that the company has spent buying back stock that it has not subsequently resold
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