|Earnings per share of common stock|
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Definition of Earnings per share of common stock
Earnings per share of common stock
How much profit a company made on each share of common stock this year.
a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity.
earnings of a firm as reported on its income statement.
A merger or consolidation in which an acquirer purchases the acquiree's stock.
Publicly traded issues that may be collateralized by mortgages and MBSs.
Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign
The second-largest stock exchange in the United States. It trades
For investment companies, the management fee and "other expenses,"
The periodic rate times the number of periods in a year. For example, a 5%
The effective, or true, annual rate of return. The APY is the rate actually
The annual rate of return that when compounded t times, would have
Floating rate preferred stock, the dividend on which is adjusted every
Number of shares authorized for issuance by a firm's corporate charter.
The ratio of accounts receivables to sales, or the total
A method developed by BARRA, a consulting firm in
The beta of a stock is determined as follows:
Book value per share
The ratio of stockholder equity to the average number of common shares. Book value
Capital market imperfections view
The view that issuing debt is generally valuable but that the firm's
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Cash flow per common share
Cash flow from operations minus preferred stock dividends, divided by the
Short-term unsecured promissory notes issued by a corporation. The maturity of
Committee, AIMR Performance Presentation Standards Implementation Committee
The Association for Investment Management and Research (AIMR)'s performance Presentation Standards Implementation
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 equivalent
A convertible security that is traded like an equity issue because the optioned
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
The length of the time period (for example, a quarter in the case of quarterly
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.
The length of time for which the customer is granted credit.
Cumulative preferred stock
Preferred stock whose dividends accrue, should the issuer not make timely
Commercial paper sold directly by the issuer to investors.
Direct stock-purchase programs
The purchase by investors of securities directly from the issuer.
The period during which a customer can deduct the discount from the net amount of the bill
Discounted payback period rule
An investment decision rule in which the cash flows are discounted at an
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Dividends per share
Dividends paid for the past 12 months divided by the number of common shares
Net income for the company during the period.
Earnings before interest and taxes (EBIT)
A financial measure defined as revenues less cost of goods sold
Earnings per share (EPS)
EPS, as it is called, is a company's profit divided by its number of outstanding
Earnings retention ratio
Positive or negative differences from the consensus forecast of earnings by institutions
The ratio of earnings per share after allowing for tax and interest payments on fixed interest
The real flow of cash that a firm could pay out forever in the absence of any change in
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
Short-term notes with maturities up to 360 days that are issued by companies in
The time interval over which a money manager's performance is evaluated.
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
FHA prepayment experience
The percentage of loans in a pool of mortgages outstanding at the origination
Fully diluted earnings per shares
earnings per share expressed as if all outstanding convertible securities
Funds From Operations (FFO)
Used by real estate and other investment trusts to define the cash flow from
A constant stream of cash flows without end that is expected to rise indefinitely.
common stock of a company that has an opportunity to invest money and earn more than the
Length of time that an individual holds a security.
Holding period return
The rate of return over a given period.
Income statement (statement of operations)
A statement showing the revenues, expenses, and income (the
common stock with a high dividend yield and few profitable investment opportunities.
Issued share capital
Total amount of shares that are in issue. Related: outstanding shares.
Privately placed common stock, so-called because the SEC requires a letter from the purchaser
stocks that are traded on an exchange.
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-earnings ratio to
stocks that are traded on an exchange.
Management/closely held shares
percentage of shares held by persons closely related to a company, as
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
A portfolio strategy in which a portfolio is created that will be capable of
Net operating losses
Losses that a firm can take advantage of to reduce taxes.
Net operating margin
The ratio of net operating income to net sales.
The period of time between the end of the discount period and the date payment is due.
In the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not
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
Purchase or sale of government securities by the monetary authorities to increase or
Open-market purchase operation
A systematic program of repurchasing shares of stock in market
Operating cash flow
earnings before depreciation minus taxes. It measures the cash generated from
The average time intervening between the acquisition of materials or services and the final
Degree to which exchange rate changes, in combination with price changes, will alter a
Operating profit margin
The ratio of operating margin to net sales.
Short-term, cancelable lease. A type of lease in which the period of contract is less than the
Fixed operating costs, so-called because they accentuate variations in profits.
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is
Operationally efficient market
Also called an internally efficient market, one in which investors can obtain
Outstanding share capital
Issued share capital less the par value of shares that are held in the company's treasury.
shares that are currently owned by investors.
When a security is expected to appreciate at a rate faster than the overall market.
Money market instruments, commercial paper and other.
Paper gain (loss)
Unrealized capital gain (loss) on securities held in portfolio, based on a comparison of
Perfect capital market
A market in which there are never any arbitrage opportunities.
An idealized market environment in which every market participant is too small to affect
A financial result in which the profit and loss from the underlying asset and the hedge position
Perfect market view (of capital structure)
Analysis of a firm's capital structure decision, which shows the
Perfect market view (of dividend policy)
Analysis of a decision on dividend policy, in a perfect capital
Perfectly competitive financial markets
Markets in which no trader has the power to change the price of
Perfected first lien
A first lien that is duly recorded with the cognizant governmental body so that the lender
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