Ownership in a Corporation Is Represented by Shares of Common

question 21

Short Answer

Ownership in a corporation is represented by shares of common or preferred stock called ____________________ securities.

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Definitions:

Voting Stock

Shares that give the shareholder the right to vote on corporate matters, typically regarding the election of the board of directors.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenues.

Cash Dividend

A distribution of a company's profits paid to shareholders in the form of cash.

Equity Method

The equity method is an accounting technique used to record investments in associate companies where the investor has significant influence but not full control.