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12 Cards in this Set
- Front
- Back
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Stock Classification
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- 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 |
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Stock valuations
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- Par: assigned accounting value
- Book: liquidation or net worth value - Market: value determined by supply and demand |
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Preemptive Rights
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Allow shareholders to maintain proportionate interest
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Voting Rights
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Directors, issuance of convertible bonds or preferred stock; not on dividend payment or amount
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Stock Splits
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- 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 |
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Perferred Stock
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- Par value = $100
- Stated (fixed) dividend rate - Priority over common stock in iquidation and dividend payment - Typically no voting rights |
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Current Yield
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Annual dividends divided by current market price
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Rights
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- 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 |
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Warrants
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- Long term
- Exercise price above market when issued - Trade as separate security - Offered as sweeteners |
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ADRs
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- No preemptive rights
- Dividends in dollars - No voting rights |
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REITs
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- 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 |
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Dividends
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- 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 |
