Question

Match each of the following terms with the appropriate definitions:

1. An amount assigned per share by the corporation in its charter. Stock split
2. A corporation's distribution of its own stock to its stockholders without the receipt of any payment. No-par value stock
3. The number of shares of stock that a corporation's charter allows it to sell. Stock dividend
4. Preferred stock that gives the issuing corporation the right to purchase or retire it at specified future prices and dates. Authorized stock
5. The costs of bringing a corporation into existence that include legal fees, promoters' fees, and amounts paid to obtain a charter. Common stock
6. The distribution of additional shares of stock to stockholders according to their present ownership. Preemptive right
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. Par value
8. A class of stock that has not been assigned a par value by the corporate charter. Callable preferred stock
9. Preferred stock giving the holder the option of exchanging it for common stock at a specified rate. Convertible preferred stock
10. The basic stock of a corporation that usually carries voting rights for controlling the corporation. Organization costs

Answer

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