Explain What Is Meant by a "Trust

question 26

Essay

Explain what is meant by a "trust."

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a particular period, culminating in its net income or loss.

Cumulative

Referring to something that increases or accumulates over time, such as cumulative voting rights or cumulative dividends.

Stated Value

A value assigned to no-par value stock by the issuing company's board of directors to serve as the stock's legal capital.

No-par Stock

Shares issued without a par value listed on the face of the stock certificate, allowing the company more flexibility in setting their value.