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13 Cards in this Set
- Front
- Back
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constant dividend growth rate model |
a common stock valuation model that assumes that dividends will grow at a constant rate forever |
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cumulative voting |
voting in which each share of stock allows the shareholder a number of votes equal to the number of directions being elected. The shareholder can then cast all of his or her votes for a single candidate or split them among the various candidates. |
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Majority voting |
each share of stock allows the shareholder one vote, and each position on the board of directors is voted on separately. |
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Proxy |
a means of voting in which a designated party is provided with the temporary power of attorney to vote for the signee at the corporation's annual meeting. |
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Price/earning ratio |
the price the market places on $1 dollar of a firm’s earning. For example if a firm has earnings per share of 2 and a stock price of 30 its price to earning ratio is 16 or 30 /2. pg. 309 |
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Cumulative preferred stock |
preferred stock that requires all past unpaid preferred stock dividends to be paid before any common stock dividends are declared |
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Markets required yield |
the rate of return on the preferred stocks contractually promised dividend. This markets required yield is analogous to the markets required yield to maturity on a bond. |
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American stock exchange (AMEX) |
the nation's second largest floor based exchange.’ |
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Block holding |
the situation when one investor holds 10,000 shares or more by one holder. |
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initial public offering (IPO) |
the first time a company issues stock to the public. This occurs in primary markets. |
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Nasdaq |
an electronic stock exchange where OTC stocks are traded |
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New york stock exchange (NYSE) |
the largest organized stock exchange |
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Over the counter (OTC) market |
a network of dealers who trade stocks that have no listing or membership requirements. |
