Term
| A Common Stockholder is an ___________ of a Corporation. |
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Definition
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Term
| A fixed number of shares set to be issued when a corporation is formed is called ________________ |
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Definition
| Authorized Stock or Authorized Shares |
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Term
| Shares that are repurchased by an issuing company |
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Definition
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Term
| Why might a corporation repurchase it's outstanding shares? |
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Definition
The market price is low
Raise Earnings Per Share
Fund pensions or stock option plans
To be used for future mergers or acqusitions |
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Term
| All outstanding shares must be _________ in the owner's name. |
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Definition
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Term
| What is the purpose of the Registrar? |
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Definition
| Maintain a record of all shareholder names and address to ensure a company does not sell more stock than authorized. |
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Term
| What is the purpose of the Transfer Agent? |
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Definition
| Handles the mailings to shareholders (dividends, corporate reports, voting materials) |
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Term
| What items of business REQUIRE a shareholder vote? |
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Definition
Stock Split
Reverse Stock Split
Issuing Convertible Bonds or Preferred Stock
Issuance of Stock Options for Officers |
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Term
| How many votes per share does each shareholder receive? |
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Definition
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Term
| What is the difference between Statutory Voting and Cumulative Voting? |
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Definition
Statutory = The number of votes per directorship is capped
Cumulative = There is no cap to number of votes per directorship |
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Term
| Is a Savings Bond a Negotiable or Non-Negotiable Security? |
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Definition
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Term
| What is a Preemptive Right? |
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Definition
| The right of a common shareholder to buy new shares of the company before anyone else. Shareholders can purchase new shares in a Rights Offering for less than the market price. |
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Term
| A dividend is declared on July 1st. The Record date is set for Monday, July 12th. When is the LAST day a customer can purchase shares and still receive a dividend? |
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Definition
Thursday, July 8th
It takes 3-Business days after the trade date for a trade to settle. If the trade settles on or before the record date, the purchaser will be recorded. |
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Term
| How often may Preferred Stock Dividends be paid? |
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Definition
| Semi Annually or Quarterly |
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Term
| If the Board of Directors vote to omit a dividend, do Preferred Stockholders still receive a dividend? |
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Definition
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Term
| Corporation ABC is paying out $20 in annual dividends. The current market price of the stock is $40. What |
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Definition
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Term
| As interests rates increase, Preferred Stock prices _____________ |
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Definition
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Term
| What is the forumla for Dividend Yield or Current Yield? |
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Definition
| Annual Income / Market Price |
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Term
| What is the formula for P/E? |
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Definition
| Market Price of Security/Earnings Per Share |
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Term
| What is the formula for Earnings per Share? |
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Definition
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