Examlex
In situations where the bank fails to detect forged signatures and the customer does not immediately notice that the forged cheques have been cashed from its account,the courts will look to the bank-customer agreement to determine liability.If there is none,the common law rules apply.
Legal Dividend
A dividend that a company is legally allowed to distribute as determined by its net income or retained earnings.
Noncumulative Preferred Stock
A type of preferred stock that does not accumulate unpaid dividends; if a dividend is skipped, it is not required to be paid later.
Retained Earnings
The portion of net earnings not distributed as dividends to shareholders but reinvested in the business or kept as a reserve.
Par Value
The face value of a bond or stock as stated by the issuer, which may differ from its market value.
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