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If you take a large lecture class, you would probably see the same students every day in class, but you would have a difficult time recognizing all of them. Because most of these students are unimportant to you, you do not process their faces in a meaningful way, forgetting their faces as a result of ____________.
Treasury Stock
Shares that were once part of the outstanding shares and have been bought back by the issuing company, reducing the amount of stock on the open market.
Common Stock
Equity shares that represent a form of corporate ownership, entitling the shareholder to a share of the company's success through dividends and or capital appreciation.
Stock Split
A corporate action that increases the number of shares in a company, reducing the price per share without changing the market capitalization.
Preferred Stock
A type of stock that gives holders preferential treatment over common stockholders regarding dividends and claims on assets in case of liquidation.
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