Question

1. For each description, choose the term it best matches: Retractable preferred shares; CumulativeInitial public offering; Redeemable preferred shares; Secondary marketRetained earnings; Issued shares; ConvertibleLegal capital; Liquidation preference; Authorized shares; Public corporation. a. Preferred shares that give the shareholder the right to redeem shares at their option b.The type of corporation whose shares are traded in an organized securities market, such as the Toronto Stock Exchange c.Preferred shares that give the issuing corporation the right to repurchase the shares at a specified price and date d.The maximum number of shares a corporation is allowed to sell e.The number of shares a corporation has actually sold f.The first time a corporation's shares are offered to the public g.Where investors buy and sell shares from each other, rather than from the company h.The element of shareholders' equity that is increased by profit and decreased by losses i.A preference to get money back before common shareholders if the company is bankrupt j.The share capital that must be retained in the business for the protection of corporate creditors k.A feature that allows preferred shareholders to exchange their shares for common shares l. A preference to collect unpaid dividends on preferred shares before common shareholders can receive a dividend

Answer 1

a. Preferred shares that give the shareholder the right to redeem shares at their option
Retractable preferred shares

b.The type of corporation whose shares are traded in an organized securities market, such as the Toronto Stock Exchange
Public Corporation

c.Preferred shares that give the issuing corporation the right to repurchase the shares at a specified price and date
Redeemable preferred shares

d.The maximum number of shares a corporation is allowed to sell
Authorized Shares

e.The number of shares a corporation has actually sold
Issued Shares

f.The first time a corporation's shares are offered to the public
Initial Public Offer

g.Where investors buy and sell shares from each other, rather than from the company
Secondary Market

h.The element of shareholders' equity that is increased by profit and decreased by losses
Retained Earnings

i.A preference to get money back before common shareholders if the company is bankrupt
Liquidation Preference

j.The share capital that must be retained in the business for the protection of corporate creditors
Legal Capital

k.A feature that allows preferred shareholders to exchange their shares for common shares
Convertible

l. A preference to collect unpaid dividends on preferred shares before common shareholders can receive a dividend
Cumulative