Shared Flashcard Set

Details

Intro to Equities
Session 4 (Corporate Actions) 03MAR2015
10
Finance
Professional
03/03/2015

Additional Finance Flashcards

 


 

Cards

Term
Corporate Actions
Definition

Events that effect a company and its stakeholder (including, but not restricted to its shareholders)Ex. Stock splits, buy backs, etc.

Term
Stock
Definition
Term
Cash Dividends
Definition

Cash paid on a quarterly basis (in the US) by the company to its existing shareholders. (Not a required corporate action)

 

a way for a value company (such as IBM) to attract investors, because they have the money to pay out cash dividends

Term
Capital Changes
Definition

Large events that alter the structure of a company, changes in the composition or legal status.

  • IPO
  •  Acquisitions, Mergers
  • Spin-offs, divestitures
  • Stock buybacks
  • Bankruptcy filings
Term
Distributions
Definition
Distribution of cash, stock, or some other item of value to shareholders.
Term
Stock Splits
Definition

The company divides each of its existing shares into additional shares.  Your market value does not change.

 2 for 1 - for every 1 share you have at $100 you now have 2 shares that are worth $50

(two types)

  1. Stock Split
  2. Reverse Stock Split
Term
Resverse Stock Split
Definition

Company isn't doing well so may enter into a reverse to boost impression of their actual stock

ex. going from 50.00 price to 100.00

For ever 2 shares you now own 1, market value stays the same.

Term
Ex Date
Definition
first day on which the stock trades without entitlement to the ditributions. Two days before the record date.
Term
Record Date
Definition
Date company looks to see who its shareholders or "holders of record" are.  Ensures that dividend checks get sent to the right people.
Term
Dividend Yield
Definition
The annual dividends per share divided by the price per share, expressed as a percentage
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