|Common stock equivalent
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Definition of Common stock equivalent
Common stock equivalent
A convertible security that is traded like an equity issue because the optioned
A merger or consolidation in which an acquirer purchases the acquiree's stock.
Publicly traded issues that may be collateralized by mortgages and MBSs.
The second-largest stock exchange in the United States. It trades
Floating rate preferred stock, the dividend on which is adjusted every
The beta of a stock is determined as follows:
Bond yield calculated on an annual percentage rate method. Differs from annual
The method used for computing the bond-equivalent yield.
The annualized yield to maturity computed by doubling the semiannual yield.
The value of assets that can be converted into cash immediately, as reported by a
A short-term security that is sufficiently liquid that it may be considered the financial
Cash flow from operations minus preferred stock dividends, divided by the
Temporary investments of currently excess cash in short-term, high-quality
An amount that would be accepted in lieu of a chance at a possible higher, but
An agreement between two or more countries that permits the free movement of capital
These are securities that represent equity ownership in a company. common shares let an
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
Common stock market
The market for trading equities, not including preferred stock.
Common stock ratios
Ratios that are designed to measure the relative claims of stockholders to earnings
The representing of accounting information over multiple years as percentages
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
Convertible exchangeable preferred stock
Convertible preferred stock that may be exchanged, at the
Convertible preferred stock
Preferred stock that can be converted into common stock at the option of the holder.
Corporate taxable equivalent
Rate of return required on a par bond to produce the same after-tax yield to
Coupon equivalent yield
True interest cost expressed on the basis of a 365-day year.
Cumulative preferred stock
Preferred stock whose dividends accrue, should the issuer not make timely
Direct stock-purchase programs
The purchase by investors of securities directly from the issuer.
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Employee stock fund
A firm-sponsored program that enables employees to purchase shares of the firm's
Employee stock ownership plan (ESOP)
A company contributes to a trust fund that buys stock on behalf of
Equivalent annual annuity
The equivalent amount per year for some number of years that has a present
Equivalent annual benefit
The equivalent annual annuity for the net present value of an investment project.
Equivalent annual cash flow
Annuity with the same net present value as the company's proposed investment.
Equivalent annual cost
The equivalent cost per year of owning an asset over its entire life.
Equivalent bond yield
Annual yield on a short-term, non-interest bearing security calculated so as to be
Given the after-tax stream associated with a lease, the maximum amount of conventional
Equivalent taxable yield
The yield that must be offered on a taxable bond issue to give the same after-tax
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
Also called a busted convertible, a convertible security that is trading like a straight
common stock of a company that has an opportunity to invest money and earn more than the
common stock with a high dividend yield and few profitable investment opportunities.
Privately placed common stock, so-called because the SEC requires a letter from the purchaser
stocks that are traded on an exchange.
stocks that are traded on an exchange.
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
New York Stock Exchange (NYSE)
Also known as the Big Board or The Exhange. More than 2,00 common
Non-cumulative preferred stock
Preferred stock whose holders must forgo dividend payments when the
Philadelphia Stock Exchange (PHLX)
A securities exchange where American and European foreign
Preferred equity redemption stock (PERC)
Preferred stock that converts automatically into equity at a
A security that ranks junior to preferred stock but senior to common stock in the right to
A security that shows ownership in a corporation and gives the holder a claim, prior to the
Preferred stock agreement
A contract for preferred stock.
Repurchase of stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
Reverse stock split
A proportionate decrease in the number of shares, but not the value of shares of stock
Ownership of a corporation which is represented by shares which represent a piece of the corporation's
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend
Formal organizations, approved and regulated by the Securities and Exchange Commission
A firm's repurchase of outstanding shares of its common stock.
An active portfolio management technique that focuses on advantageous selection of
Balance sheet item that includes the book value of ownership in the corporation. It
Stock index option
An option in which the underlying is a common stock index.
Also called the equity market, the market for trading equities.
An option in which the underlying is the common stock of a corporation.
Stock replacement strategy
A strategy for enhancing a portfolio's return, employed when the futures
Occurs when a firm issues new shares of stock but in turn lowers the current market price of its
This is a lettered symbol assigned to securities and mutual funds that trade on U.S.financial exchanges.
Holder of equity shares in a firm.
Set of books kept by firm management for its annual report that follows Financial
The residual claims that stockholders have against a firm's assets, calculated by
Running out of inventory.
common stock that has been repurchased by the company and held in the company's treasury.
BOOK VALUE OF COMMON STOCK
The theoretical amount per share that each stockholder would receive if a companyâ€™s assets were sold on the balance sheetâ€™s date. Book value equals:
CASH AND CASH EQUIVALENTS
The balance in a companyâ€™s checking account(s) plus short-term or temporary investments (sometimes called â€śmarketable securitiesâ€ť), which are highly liquid.
Earnings per share of common stock
How much profit a company made on each share of common stock this year.
RATE OF RETURN ON STOCKHOLDERSâ€™ EQUITY
The percentage return or profit that management made on each dollar stockholders invested in a company. Hereâ€™s how you figure it:
RATIO OF DEBT TO STOCKHOLDERSâ€™ EQUITY
A ratio that shows which groupâ€”creditors or stockholdersâ€”has the biggest stake in or the most control of a company:
Certificates that signify ownership in a corporation. A share of stock represents a claim on a portion of the companyâ€™s assets.
STOCKHOLDERSâ€™ (OR OWNERSâ€™) EQUITY
The value of the ownersâ€™ interests in a company.
Shares of ownership sold to the public.
No par value stock
stock issued by the company that does not have an arbitrary value (par value) assigned to it.
Stated value stock
stock issued by the company that does not have a par value, but does have a stated value. For accounting purposes, stated value is functionally equivalent to par value.
The total amount of contributed capital and retained earnings; synonymous with shareholdersâ€™ equity.
Shares that were sold to the public but have since been repurchased by the company in the open market. Treasury stock is deducted from the equity section, and is therefore a contraequity account.
Ownership shares issued by a business corporation. A business
stockholders' equity, statement of changes in
Although often considered
Bond Equivalent Yield
Bond yield calculated on an annual percentage rate method
A financial security that represents an ownership claim on the
Cost of Common Stock
The rate of return required by the investors in the common stock of
Cost of Preferred Stock
The rate of return required by the investors in the preferred stock of
A type of equity security where holders have a claim on the assets
Return on Common Equity Ratio
A measure of the percentage return earned on the value of the
common body of knowledge (CBK)
the minimum set of knowledge needed by a person to function effectively in a particular field
Employee Stock Ownership Plan (ESOP)
a profit-sharing compensation program in which investments are made in
equivalent units of production (EUP)
an approximation of the number of whole units of output that could have been
a buffer level of inventory kept on hand by a company in the event of fluctuating usage or unusual delays in lead time
stock appreciation right
a right to receive cash, stock, or a combination of cash and stock based on the difference between a specified dollar amount per share of stock and the quoted market price per share at some future date
a right allowing the holder to purchase shares of common stock during some future time frame and at a specified price
the condition of not having inventory available
A type of stock that usually pays a fixed dividend prior to any distributions
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