Glossary

AAA    American Accounting Association.

Accredited Investors    Individuals with historical income in excess of $200,000 per year, individuals whose net worth exceeds $1 million, or families with joint income of over $300,000. This also includes entities with assets in excess of $5 million. Under Dodd-Frank, individuals may no longer include the value of their primary residence for the purpose of determining net worth under the accredited investor definition.

Acquisition     Transaction in which an acquiring firm will negotiate with a target firm over a purchase price for the target.

Acquisition Premium    A price paid in excess of the market value of the firm. Acquisition premiums are often used to entice shareholders to sell their shares to a potential buyer.

AICPA     American Institute of Certified Public Accountants; governs the practice of public accountancy except for standards related to the audit of public companies, which are defined by the Public Company Accounting Oversight Board (PCAOB); www.aicpa.org.

Auditing Standard No. 5    Requires all publicly registered firms in the United States to receive an audit of management's assessment of the effectiveness of internal control over financial reporting.

Bankruptcy Code    The U.S. Bankruptcy Code; law containing numerous provisions governing bankruptcy proceedings.

Blank Check Company    A development stage company without a specific business plan or purpose.

Blue Sky Laws    Laws that regulate the offer and ...

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