Question

The following are a list of terms.

______ 1) Additional paid in capital

______ 2) Authorized capital stock

______ 3) Legal capital

______ 4) Preemptive right

______ 5) Registrar

______ 6) Stated value

______ 7) Subscribed capital stock

______ 8) Transfer agent

______ 9) Treasury stock

______ 10) Voting right Required:

Match the following definition with the terms listed above.

a) Installment purchase contract with an investor.

b) An independent party hired to handle the stock issuance.

c) Maintains the shareholders records.

d) The ability to elect directors.

e) Maintains a proportionate share of ownership.

f) Shares authorized by state charter.

g) Stocks that were issued and reacquired by the corporation.

h) To protect the corporations creditors.

i) No-par value

j) The excess received is recorded in this account.

Answer 1

a. Installment purchase contract with the investor					6. Stated value
b. An independent party hired to handle the stock issuance					8. Transfer agent
c. maintains the shareholder records					5. Registrar
d. The ability to elect directors					10. Voting rights required
e. maintains a proportionate share of ownership					4. Preemptive right
f. Share authorized by State Charter					2. Authorized Capital Stock
g. The stock that were issued and reacquired by corporation					9. Treasury Stock
h. To protect corporate creditors					3. Legal Capital
i. No par value					7. Subscribed capital Stock
j The excess received is recorded in this account					1. Additional paid in capital