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During a lunch discussion on the TV show Lost,your friend Aldo exclaims,"I have a theory about the mysteries of the island." Having just come from your Psychology class,you turn to Aldo and say,"you don't really have a theory.You have a hunch.I know this because a theory is ____."
Treasury Stock
Shares that were once part of the outstanding stock but were bought back by the issuing company, reducing the amount of outstanding stock.
Preferred Stock
Preferred stock is a class of shares that offers dividends and ownership in a company but typically does not confer voting rights, with dividends received before common shareholders.
Par Value
The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.
Net Income
The total profit or loss of a company after all revenues, costs, and expenses have been deducted, often referred to as the bottom line.
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