|Preferred equity redemption stock (PERC)|
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Definition of Preferred equity redemption stock (PERC)
Preferred equity redemption stock (PERC)
preferred stock that converts automatically into equity at a
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 periodic rate times the number of periods in a year. For example, a 5%
Interest rate that is annualized using simple interest.
The effective, or true, annual rate of return. The APY is the rate actually
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:
The theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals:
A management style that de-emphasizes the significance of economic
Ownership shares issued by a business corporation. A business
The total amount of plant, equipment, and other physical capital.
These are securities that represent equity ownership in a company. Common shares let an
Shares of ownership sold to the public.
A financial security that represents an ownership claim on the
Ownership shares in a publicly held corporation.
That part of the capital stock of a corporation that carries voting rights and represents
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/other equity
Value of outstanding common shares at par, plus accumulated retained
Common stock ratios
Ratios that are designed to measure the relative claims of stockholders to earnings
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
Inventories owned by a company, but located on the premises
An account that reduces an equity account. An example is Treasury stock.
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.
Cost of Common Stock
The rate of return required by the investors in the common stock of
Cost of Equity
Same as the cost of common stock. Sometimes viewed as the
Cost of Preferred Stock
The rate of return required by the investors in the preferred stock of
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 comparison of debt to equity in a company's capital structure.
A widely used financial statement ratio to assess the
A common term for convertible bonds because of their equity component and the
The informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock.
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
Earnings per share of common stock
How much profit a company made on each share of common stock this year.
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
Employee Stock Ownership Plan (ESOP)
a profit-sharing compensation program in which investments are made in
Employee Stock Ownership Plan (ESOP)
A fund containing company stock and owned by employees, paid for by ongoing contributions by the employer.
Represents ownership interest in a firm. Also the residual dollar value of a futures trading account,
Funds raised from shareholders.
Amounts contributed to the company by the owners (contributed capital) plus the residual earnings of the business (retained earnings).
Refers to one of the two basic sources of capital for a business, the
The difference between the total of all recorded assets and liabilities on the balance
Ownership. Common stock represents equity in a corporation.
The net worth of a business, consisting of capital stock, capital (or paid-in) surplus (or retained earnings), and, occasionally, certain net worth reserves. Common equity is that part of the total net worth belonging to the common shareholders. Total equity includes preferred shareholders. The terms common stock, net worth, and common equity are frequently used interchangeably.
The net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares or stocks are often known as equities.
Life insurance or annuity product in which the cash value and benefit level fluctuate according to the performance of an equity portfolio.
Refers to the investors percentage ownership of a company that can be re-acquired by the company, usually at a pre-determined amount.
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
Through equity investment, investors gain part ownership of the corporation. The primary type of equity investment is corporate stock.
Used to refer to warrants because they are usually issued attached to privately placed bonds.
Related: Variable life
Accounting method for an equity security in cases where the investor has sufficient
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
An ownership interest in an enterprise, including preferred and common stock.
A swap in which the cash flows that are exchanged are based on the total return on some stock
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.
preferred stock paying dividends that vary with short-term interest rates.
Low-cost, high-usage inventory items stored near the shop floor,
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
Heavenly Parachute Stock Option
A nonqualified stock option that allows a deceased option holder’s estate up to three years in which to exercise his or her
Incentive Stock Option
An option to purchase company stock that is not taxable
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.
stocks that are traded on an exchange.
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
A production scheduling system under which products are completed
Mandatory redemption schedule
Schedule according to which sinking fund payments must be made.
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
Market segmentation theory or preferred habitat theory
A biased expectations theory that asserts that the
Monthly income preferred security (MIP)
preferred stock issued by a subsidiary located in a tax haven.
New York Stock Exchange (NYSE)
Also known as the Big Board or The Exhange. More than 2,00 common
No par value stock
stock issued by the company that does not have an arbitrary value (par value) assigned to it.
Non-cumulative preferred stock
preferred stock whose holders must forgo dividend payments when the
Nonqualified Stock Option
A stock option not given any favorable tax treatment
Optimal redemption provision
Provision of a bond indenture that governs the issuer's ability to call the
Outbound stock point
A designated inventory location on the shop floor between
Refers to the capital invested in a business by its shareowners
The total of all capital contributions and retained earnings on a business’s
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