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Basically, path analysis attempts to:
Common Stock
An ownership stake in a corporation, represented through a security known as corporate equity ownership.
Retained Earnings
Profits that a company keeps at the end of a fiscal period, after dividends are paid, for reinvestment or debt payment.
Additional Paid-in Capital
The amount of money that shareholders have paid in excess of the par value of the shares; this can occur when shares are initially sold or during subsequent capital injections.
Preferred Stock
A class of ownership in a corporation that typically provides dividend payments before dividends are issued to common stockholders, often with no voting rights.
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