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15 Cards in this Set

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  • Back
STOCK CLASSIFICATIONS
Authorized: # of shares a corp. is permitted to issue.
Issued: has been sold to public.
Treasury: repurchased by corp.,no voting,no dividends,can't be traded on open market.
Outstanding: # of shares held by public.
Treasury= issued-outstanding
Outstanding= issued-treasury
STOCK VALUATIONS
Par: assigned accounting value.
Book: liquidation or net worth value.
Market: value determined by supply & demand.
PREEMPTIVE RIGHTS
Allow shareholders to maintain proportionate interest.
VOTING RIGHTS
Directors, issuance of convertible bonds or preferred stock; NOT on dividend payment or amount.
STOCK SPLITS
Forward: more shares, less value per share, same total value as before and after.
Reverse: less shares, more value per share, same total value as before and after.
PREFERRED STOCK
Par value=$100
Stated (fixed) dividend rate.
Priority over common stock in liquidation & dividend payment.
Typically no voting rights.
CURRENT YIELD
Annual dividends divided by current price.
RIGHTS
30-45 day duration.
exercise price is below market on issuance.
Trade as a seperate security.
Available to existing shareholders only.
One right per share outstanding.
WARRENTS
Long term.
Exercise price above market when issued.
trade as a seperate security.
Offered as sweetners.
ADRs
No preemptive rights.
Dividend in dollars.
No voting rights.
REITs
Not a limited partnership.
Not an investment company.
Pass through income, not losses.
75% of income must come from real estate.
Must distribute 90% or more of income to shareholders to avoid taxation as a trust.
Trade on exchanges or OTC.
DIVIDENDS
Ex-date 2 business days prior to record date.
Ex-date set by NASD or Exchange.
Price of stock reduced at the opening by the amount of the dividend.
MATURITIES
Term: matures at 1 date in the future.
Serial: matures over a period of years; Balloons: large lump payment at end;Series: spread out issue, not maturity.
INVESTMENT GRADE
Baa or BBB and above; based on default risk; ability to pay interest & principal when due.
CALL FEATURE
Called by issuer when interest rates are falling; no interest after call.
Issuer cannot call during call protection period.