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7 Cards in this Set
- Front
- Back
- 3rd side (hint)
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For this type of voting, you can only cast the number of shares you own for any one seat.
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statutory voting
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Example: You own 100 shares of common stock. You have 100 votes to cast. There are 3 seats up for election on BOD. With statutory voting, you can only cast 100 votes for each seat for a total of 300 votes for 3 seats. All 300 can NOT be cast for 1 seat.
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This type of voting benefits the small/minority shareholder
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cumulative voting
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Example: You own 100 shares of common stock, you have 100 votes to cast. There are 3 seats up for election on BOD. With cumulative voting, you CAN cast all 300 votes for 1 seat.
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This tells how much an investor has to pay to get a certain amount in dividends.
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yield
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ANNUAL dividend / Market price
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Another term for growth of equity securities.
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capital appreciation
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Example: If you buy a stock at $10 and a year later it's worth $20, that would be capital appreciation of 100%
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You buy a stock for $20 and the market price rises to $25. The stock pays $2 in dividends. What is the total return?
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7/20 or 35%
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= (dividend + capital appreciation) / cost
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Stock trades right now for $30. Two rights plus $24 will get you 1 new share of stock. What is the "value" of the "cum right?"
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$2
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= (market-subscription) / (# rights needed +1)
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What is the difference in the formulas for "cum rights" and "ex-rights?"
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For ex-rights, you don't add 1 to the number of rights needed.
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Ex-Rights =
(market-subscription)/#rights needed |
