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12 Cards in this Set

  • Front
  • Back
Stock Classification
- Authorized: number of shares corporation is permitted to issue
- Issued: has been sold to the public
- Treasury: repurchased by corporation; no voting rights, receives no dividends, cannot be traded on the open market
- Outstanding: number of shares held by the public
- Treasury = issued - outstanding
- Outstanding = issued - treasury
Stock valuations
- Par: assigned accounting value
- Book: liquidation or net worth value
- Market: value determined by supply and 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 before and after
- Reverse: less shares, more value per share, same total value before and after
Perferred Stock
- Par value = $100
- Stated (fixed) dividend rate
- Priority over common stock in iquidation and dividend payment
- Typically no voting rights
Current Yield
Annual dividends divided by current market price
- 30-45 day duration
- Excerise price is below market on issuance
- Trade as a separate security
- Available to existing shareholders only
- One right per share outstanding
- Long term
- Exercise price above market when issued
- Trade as separate security
- Offered as sweeteners
- No preemptive rights
- Dividends in dollars
- No voting rights
- 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
- 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