Examlex
Which of the following two subcategories compose a functional assessment?
Retained Earnings
The portion of a company's profit that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay off debt.
Paid-In Capital
The total amount of money that shareholders have invested in the company by purchasing shares directly from the company.
Common Stock
Equity ownership in a corporation, where holders often have voting rights but are last in line in claims to assets and income.
Preferred Stock
A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.
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