Q1.

Dividend
A distribution of a portion of a company's earnings, decided by the
board of directors, to a class of its shareholders. The dividend is most often quoted
in terms of the dollar amount each share receives (dividends per share). It can also
be quoted in terms of a percent of the current market price, referred to as dividend
yield.
Dividends may be in the form of cash, stock or property. Most secure and stable
companies offer dividends to their stockholders.
Q2. Corporation
A legal entity that is separate and distinct from its owners. Corporations enjoy most
of the rights and responsibilities that an individual possesses; that is, a corporation
has the right to enter into contracts, loan and borrow money, sue and be sued, hire
employees, own assets and pay taxes.
A corporation is created (incorporated) by a group of shareholders who have
ownership of the corporation, represented by their holding of common stock.
Q3. Common stock
A security that represents ownership in a corporation. Holders of common stock
exercise control by electing a board of directors and voting on corporate policy. If
the company goes bankrupt, the common stockholders will not receive their money
until the creditors and preferred shareholders have received their respective share
of the leftover assets.
Q4. Preferred Stock
A class of ownership in a corporation that has a higher claim on the assets and
earnings than common stock. Preferred stock generally has a dividend that must be
paid out before dividends to common stockholders and the shares usually do not
have voting rights.
Q5. Par value
1. The face value of a bond.
2. A dollar amount that is assigned to a security when representing the value
contributed for each share in cash or goods.
Q6. Cal price
The price at which a bond or a preferred stock can be redeemed by the issuer. This
price is set at the time the security is issued. Also referred to as "redemption price".
Q7. characteristics of preferred stock

Stockholder equity.. chap 11 semester 1