Match Each Term with the Appropriate Definition

question 264

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Date of Declaration

• A)The total number of shares currently owned by stockholders.
• B)The amount above the par value of the stock that owners paid the issuer for the stock.
• C)When employees of a company have the opportunity to buy a company's stock in the future at a fixed price.
• D)The date on which a company determines who receives a dividend.
• E)The date on which a liability is recorded for a dividend.
• F)When a company sells issues of stock after its IPO.
• G)When owners of the company contribute additional capital beyond what they paid for their stock.
• H)When cash or stock dividends are issued according to the proportion of stock owned.
• I)The date on which a company authorizes a dividend payment.
• J)The date on which a company debits dividends payable and credits cash.
• K)Dividends that have not had income tax withheld from them.
• L)The total number of shares the company has sold,whether held by stockholders or by the company.
• M)The accumulation of all the past dividends the company has not paid.
• N)When cash or stock dividends are issued in an equal dollar or share amount per stockholder.

---

Definitions:

Qualified Indorsement

An indorsement on a negotiable instrument in which the indorser disclaims any contract liability on the instrument; the notation “without recourse” is commonly used to create a qualified indorsement.

Restrictive

Imposing limitations or conditions on use, action, or movement.

Bearer Instrument

A negotiable financial instrument that is payable to the holder or presenter.

HDC

Stands for Holder in Due Course, a term in commercial law referring to an individual who has acquired a negotiable instrument in good faith and for value, therefore, has certain protections.