Matching Questions 109. Match each of the following terms with the appropriate definitions. 1. The distribution of additional shares of stock to stockholders according to their present...

1. The distribution of additional shares of stock to stockholders according to their present ownership

Minimum legal capital

2. Preferred stock that gives the issuing corporation the right to purchase or retire it at specified future prices and dates

Stock dividend

3. Preferred stock giving the holder the option of exchanging it for common stock at a specified rate

Authorized stock

4. A class of stock that has not been assigned a par value by the corporate charter

Callable preferred stock

5. The basic stock of a corporation that usually carries voting rights for controlling the corporation

Organization expenses

6. The costs of bringing a corporation into existence that include legal fees, promoters' fees and amounts paid to obtain a charter

Stock split

7. The right of common stockholders to maintain their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of stock issued

Preemptive right

8. A corporation's distribution of its own stock to its stockholders without the receipt of any payment

No-par value stock

9. The number of shares of stock that a corporation's charter allows it to sell

Convertible preferred stock

10. The least amount that buyers of stock must contribute to the corporation or be subject to paying at a future date

Common stock