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8 Cards in this Set
- Front
- Back
Rights of stock owners
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1. Right to certificate (proving ownership)
2. Voting rights 3. Right to buy and sell 4. Preemptive right 5. Right to information |
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Class A shares of common stock
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-shares pay cash dividends
-sold to the public -may have limited or no voting rights -similar to preferred stock but considered common |
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Class B shares of common stock
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-voting stock held by management
-limited or no cash dividends -often given to managers as a reward for founding, merging or reorganizing the company -can give management control without any investment |
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Contribution in excess of par
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Amount paid by stockholders in an issuance above the par value of the stock
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Dividends in arrears
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Some preferred stock will accumulate missed dividend payments, called dividends in arrears, which will be paid at a future date.
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Money market preferred stock
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Re-issued with a new cash dividend rate every 7 weeks. Sold in large denominations to institutional investors.
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Stock warrant
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A call option with the company's stock as the underlying security
-exercise price is initially set higher than the market price -can be traded in the secondary market |
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Stock right
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Issued to give stockholders their preemptive right.
-shorter time period than warrants (often 2-10 weeks) -exercise price often set below market price -traded mostly in the OTC market |