Business Law Crib Notes
Classified in Economy
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Available for sale securities - are debt and equity securities that are neither held for trading, held to maturity, nor held for strategic reasons.
Business combination - purchase of more than 50% ownership of the investee’s stock.
Consolidated financial statement - Combined financial statements from parent and subsidiary company.
Cost method - Investment of less than 20% of the investee’s outstanding stock.
Debt securities - Notes and bonds that pay interest and have a fixed maturity date.
Dividend yield -measures the rate of return to stockholders, based on cash dividends.
Equity method - Investments between 20%-50% of the outstanding stock.
Equity securities - Are preferred and common stock that represent OWNERSHIP in a company and DO NOT
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