|Common stock/other equity
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Definition of Common stock/other equity
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
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 discount rate that reflects only the business risks of a project and abstracts from the
The second-largest stock exchange in the United States. It trades
The ratio of total assets to stockholder equity.
Floating rate preferred stock, the dividend on which is adjusted every
The beta of a stock is determined as follows:
A management style that de-emphasizes the significance of economic
Cash flow from operations minus preferred stock dividends, divided by the
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
A convertible security that is traded like an equity issue because the optioned
The market for trading equities, not including preferred stock.
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.
Cumulative preferred stock
Preferred stock whose dividends accrue, should the issuer not make timely
Indicator of financial leverage. Compares assets provided by creditors to assets provided
A common term for convertible bonds because of their equity component and the
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.
Dual syndicate equity offering
An international equity placement where the offering is split into two
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
Represents ownership interest in a firm. Also the residual dollar value of a futures trading account,
An agreement in which one party, for an upfront premium, agrees to compensate the other at
Also called a residual claim, a claim to a share of earnings after debt obligation have been
The simultaneous purchase of an equity floor and sale of an equity cap.
Equity contribution agreement
An agreement to contribute equity to a project under certain specified
An agreement in which one party agrees to pay the other at specific time periods if a specific
Used to refer to warrants because they are usually issued attached to privately placed bonds.
Total assets divided by total common stockholders' equity; the amount of total assets per
Securities that give the holder the right to buy or sell a specified number of shares of stock, at
A swap in which the cash flows that are exchanged are based on the total return on some stock
Related: Variable life
Those holding shares of the firm's equity.
Securities sold in the Euromarket. That is, securities initially sold to investors
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
Foreign equity market
That portion of the domestic equity market that represents issues floated by foreign companies.
GEMs (growing-equity mortgages)
Mortgages in which annual increases in monthly payments are used to
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.
The balance of a margin account. Related: buying on margin, initial margin requirement.
Privately placed common stock, so-called because the SEC requires a letter from the purchaser
stock in a firm that relies on financial leverage. Holders of leveraged equity face the
stocks that are traded on an exchange.
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
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
In the balance of payments, other capital is a residual category that groups all the capital
Other current assets
Value of non-cash assets, including prepaid expenses and accounts receivable, due
Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations
Amount of funds generated during the period from operations by sources other than
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
Return on equity (ROE)
Indicator of profitability. Determined by dividing net income for the past 12
Reverse stock split
A proportionate decrease in the number of shares, but not the value of shares of stock
This is a company's total assets minus total liabilities. A company's net worth is the
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.
Stratified equity indexing
A method of constructing a replicating portfolio in which the stocks in the index
Top-down equity management style
A management style that begins with an assessment of the overall
Total debt to equity ratio
A capitalization ratio comparing current liabilities plus long-term debt to
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:
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.
Funds raised from shareholders.
Shares of ownership sold to the public.
An account that reduces an equity account. An example is Treasury stock.
Amounts contributed to the company by the owners (contributed capital) plus the residual earnings of the business (retained earnings).
No par value stock
stock issued by the company that does not have an arbitrary value (par value) assigned to it.
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