Glossary

The name of a corporation or LLC must be distinguishable on the records of the state government. If the name is not unique, the state will reject the articles of incorporation or articles of organization in the case of LLCs. A name can be reserved, usually for 120 days, by applying with the proper state authorities and paying a fee.

A computerized system that facilitates trading and offers price quotes for the most actively traded over-the-counter (OTC) securities.

Total revenue minus total costs, expenses and taxes.

The amount of asset value exceeding total liabilities.

The oldest and largest stock exchange in the U.S. The NYSE lists many of the country's largest corporations.

Stock with no minimum value. Most states allow no-par stock.

A pension plan that is funded only by employer contributions with no employee contributions.

In an employee benefit plan, a benefit that is payable upon any occurrence listed in the employee contract and cannot be forfeited.

An employee benefit plan that does not meet the requirements laid out in Section 401(a) of the Internal Revenue Code and, therefore, is not qualified for favorable tax treatment.

A corporation organized for some charitable, civil or other social purpose that does not entail the generation of profits for shareholders. These corporations receive special tax treatment. Not-for-profit corporations must file not-for-profit articles of incorporation with the state.

A public officer who can authenticate signatories on documents and take depositions or oaths, authorized by a particular state or jurisdiction. Banks, insurance agencies, legal offices and government buildings often have notaries public on staff.

Written promise made by one party to another to pay a specific amount on demand or by a definite date.

Written promise by one party to make payment to another party at a specified date.