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Definition
| Become shareholder. Common stock is an Equity Security since shareholders have an equity (meaning ownership) position in a company. Never fixed income security. |
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Term
| Order of Asset Distribution |
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Definition
1. Taxes
2.Secure Debt
3. Unsecured Debt
4. Preferred Stockholders
5. Common stockholders
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Term
| Rights Common Shareholders Do Not Have |
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Definition
1. Not entititled to recieve dividends
2. Do not have ther ight to demand or vote on the dissolution of the company.
3. Do not have the right to vote for officers or senior management of the company. |
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Definition
| is the maximum number of shares of stock that is allowed to be sold ("issued") by a corporation as regulated by its corporate charter that ia filed with the Secretary of State. |
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Definition
| Is the amount of stock taken from authorized stock that is sold or "issued" to the public ina Primary Distribution. The amount is equal to or less than the amount "authorized" by the company. |
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Definition
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Term
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Definition
1. Dividends
2. Capital Gain on Investment |
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Term
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Definition
| Want to and not have to. Paid quarterly. Decided by board of directors. |
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Term
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Definition
Results when a company repurchases its own outstanding common shares in the open market.
1. Does not vote
2. Does not recieve Dividends
3. Is not used in Earnings per Share
4. Appears on balance sheet as a deduction from issued stock. |
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Term
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Definition
Are the shares of a corporation's stock that are issued and held by stockholders. Oustanding shares are the only shares that:
1. Vote
2. Recieve Dividends
3. Are used to calculate Earnings Per Share
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Term
| All Securities purchased on margin |
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Definition
| Must be held in street name |
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Term
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Definition
| When an investor "buys" and owns any security we say they have a long position. Investors that go long generally expect the market price of the security to go up in price and are said to be Bullish. |
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Term
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Definition
| When an investor "borrows" stock from their broker-dealer and then sells teh stock they borrowed. That investor as a short position. Short sellers attempt to make money by |
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Term
| Which security is always the most risky? |
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Definition
| Common Stockholders- last to be paid if liquidation of a company occures. |
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Term
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Definition
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Term
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Definition
| is the stated fixed value printed on the face of the stock certificate. It was little or no relevance for investors. |
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Term
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Definition
| One vote per share per director |
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Term
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Definition
| One vote per share times the number of directors being voted on. Best for the investor becasue they can block votes together. |
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Term
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Definition
is the price at which a stock can be sold in the open market. Determined by supply and demand. A stock does not have a fixed market value. Fluctuates ina value daily in the market.
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Term
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Definition
| Stocks and bonds are quoted in dollars and cents. With common stock and "point" is equal to $1. |
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Term
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Definition
| The date on which a buy or sell order is executed. |
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Term
| Regular Way Settlement Date |
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Definition
| The day on which a trade must be "settled", meaning the buyer must pay for the security that was purchased and the seller must deliver the security that was sold. Regular Way settlement is three business days after the trade date (T+3) |
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Term
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Definition
| Regulation T is the Federal Reserve Board regulation covering the extensionof credit to customers. It requires that payment for purchases of securities must be recieved by the fifth business day after the trad date. (T+5) |
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Term
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Definition
| is the stock issued by a company that is generally nationally known with a reputation for quality management, products and services. |
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Term
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Definition
| Issued Stock-shares being issued to the public that has not been in the public hands before. |
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Term
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Definition
Is stock issued by a company that is expected to have above-average increases in revenues and earnings.
1. Have a high percentage of retained earnings, and therefore
2. pay little or no dividend resulting ina low dividend yield.
3. generally have a high price/earnings
4. stock price may fluctuate widely and typically have high volatility |
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Term
| 4 Reasons Companies buy back stock |
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Definition
1. Increase earnings per share
2. Finance future acquisitions (take over)
3. To provide stock for employee stock option plans
4. To fight a takeover attempt |
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Term
| Outstanding Stock Formulla |
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Definition
| Issued Stock - Treasury = Outstanding |
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Term
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Definition
Is stock that is heavily affected by normal business and economic cycles. Cyclical stocks are those that rise and fall in the economy.
Auto Manufacturers
Steel Companies
Appliance Manufactures
Housing companies
Paper companies |
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Term
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Definition
Countercyclical stocks that move in the opposite of Cyclical stocks. Move in the opposite of the economy.
Gold Mining
Budget Retailers- Walmart
Temp Agencies |
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Term
| Defensive/Non-Cyclical Stock (Not Defense) |
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Definition
Stocks issues by a company that is resistant to normal business cycles and to general stock market fluctuation. An invester would not expect significant increases or growth of defensive stocks, rather stable and consistant earnings year after year.
Tobacco Companies
Ultilities
Food Companies
Pharmaceutical companies |
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Term
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Definition
Utility companies provide electricity, gas, water, etc. to thier customers.
Above average dividends
Highly leveraged because of customer dependency
Interest rate has higher impact |
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Term
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Definition
Stocks that are undervalued and whose price can increase in value due to a number of reasons.
New Management
Introduction of a popular new product
Discovery of natural resource of corporate property
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