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Financial Terms | |
Preferred stock agreement |
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Definition of Preferred stock agreementPreferred stock agreementA contract for preferred stock.
Related Terms:CovenantsProvisions in a bond indenture or preferred stock agreement that require the bond or preferred Acquisition of stockA merger or consolidation in which an acquirer purchases the acquiree's stock. Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. American Stock Exchange (AMEX)The second-largest stock exchange in the United States. It trades Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every Beta equation (Stocks)The beta of a stock is determined as follows: Bond agreementA contract for privately placed debt. ![]() BOOK VALUE OF COMMON STOCKThe 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: Bretton Woods AgreementAn agreement signed by the original United Nations members in 1944 that Buy/Sell AgreementThis is an agreement entered into by the owners of a business to define the conditions under which the interests of each shareholder will be bought and sold. The agreement sets the value of each shareholders interest and stipulates what happens when one of the owners wishes to dispose of his/her interest during his/her lifetime as well as disposal of interest upon death or disability. Life insurance, critical illness coverage and disability insurance are major considerations to help fund this type of agreement. capital stockOwnership shares issued by a business corporation. A business Capital StockThe total amount of plant, equipment, and other physical capital. Cash deficiency agreementAn agreement to invest cash in a project to the extent required to cover any cash Common stockThese are securities that represent equity ownership in a company. Common shares let an Common stockShares of ownership sold to the public. Common StockA financial security that represents an ownership claim on the ![]() common stockOwnership shares in a publicly held corporation. Common StockThat part of the capital stock of a corporation that carries voting rights and represents Common stock equivalentA convertible security that is traded like an equity issue because the optioned Common stock marketThe market for trading equities, not including preferred stock. Common stock/other equityValue of outstanding common shares at par, plus accumulated retained Common stock ratiosRatios that are designed to measure the relative claims of stockholders to earnings Concession agreementAn understanding between a company and the host government that specifies the Conditional Sale AgreementAn agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands. Confidentiality AgreementA legal document whereby the one party, usually the prospective investor, pledges to keep strictly confidential, and return on request, any and all information provided by the entrepreneur seeking funding. Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that Consigned stocksInventories owned by a company, but located on the premises ![]() Convertible exchangeable preferred stockConvertible preferred stock that may be exchanged, at the Convertible preferred stockpreferred stock that can be converted into common stock at the option of the holder. Cost of Common StockThe rate of return required by the investors in the common stock of Cost of Preferred StockThe rate of return required by the investors in the preferred stock of Cumulative preferred stockpreferred stock whose dividends accrue, should the issuer not make timely Departmental stocksThe informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock. Direct stock-purchase programsThe purchase by investors of securities directly from the issuer. Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. Double-tax agreementagreement between two countries that taxes paid abroad can be offset against Earnings per share of common stockHow much profit a company made on each share of common stock this year. Employee stock fundA 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. Equity contribution agreementAn agreement to contribute equity to a project under certain specified Exchange of stockAcquisition of another company by purchase of its stock in exchange for cash or shares. Fiscal agency agreementAn alternative to a bond trust deed. Unlike the trustee, the fiscal agent acts as an Floating-rate preferredpreferred stock paying dividends that vary with short-term interest rates. Floor stocksLow-cost, high-usage inventory items stored near the shop floor, Forward rate agreement (FRA)agreement to borrow or lend at a specified future date at an interest rate General Agreementon Tariffs and Trade (GATT) a treaty Growth stockCommon stock of a company that has an opportunity to invest money and earn more than the Heavenly Parachute Stock OptionA nonqualified stock option that allows a deceased option holder’s estate up to three years in which to exercise his or her Incentive Stock OptionAn option to purchase company stock that is not taxable Income stockCommon stock with a high dividend yield and few profitable investment opportunities. Interest rate agreementAn agreement whereby one party, for an upfront premium, agrees to compensate the Letter stockPrivately placed common stock, so-called because the SEC requires a letter from the purchaser Listed stocksstocks that are traded on an exchange. Listed stocksstocks that are traded on an exchange. Make-to-stockA production scheduling system under which products are completed Margin account (Stocks)A leverageable account in which stocks can be purchased for a combination of Market segmentation theory or preferred habitat theoryA 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 stockstock issued by the company that does not have an arbitrary value (par value) assigned to it. Non-cumulative preferred stockpreferred stock whose holders must forgo dividend payments when the Nonqualified Stock OptionA stock option not given any favorable tax treatment North American Free Trade Agreement (NAFTA)an agreement among Canada, Mexico, and the United States establishing the North American Free Trade Zone, with a resulting reduction in trade barriers Note agreementA contract for privately placed debt. Outbound stock pointA designated inventory location on the shop floor between Philadelphia Stock Exchange (PHLX)A securities exchange where American and European foreign Preference stockA security that ranks junior to preferred stock but senior to common stock in the right to Preferred BeneficiaryUsed in older contracts to confer the same rights as an irrevocable beneficiary. Applied to family members. Preferred equity redemption stock (PERC)preferred stock that converts automatically into equity at a Preferred habitat theoryA biased expectations theory that believes the term structure reflects the Preferred RatesAs non-smoking rates caused a major reduction in the cost of life insurance in the early 1980's, the emergence of preferred non-smoker rates in 1998 has caused another noteworthy reduction in rates. A growing number of insurance companies are offering better rates which go beyond simply looking at gender or smoking habits. Other health related factors such as physical build, lifestyle, avocation and personal and family health history indicating longer life expectancy can add up to significant cost savings to new life insurance applicants. Make certain to ask about these new preferred rates. Preferred sharespreferred shares give investors a fixed dividend from the company's earnings. And more Preferred SharesAre equity instruments that take no security against assets, have flexible terms of repayment and pay fixed or floating dividends. Preferred stockA security that shows ownership in a corporation and gives the holder a claim, prior to the Preferred StockA type of equity security where holders have a claim on the assets Preferred stockA type of stock that usually pays a fixed dividend prior to any distributions preferred stockstock that takes priority over common stock in regard to dividends. Preferred Stock Stock that has a claim on assets and dividends of a corporation that are priorto that of common stock. preferred stock typically does not carry the right to vote. Purchase agreementAs used in connection with project financing, an agreement to purchase a specific Purchase AgreementThis legal document records the final understanding of the parties with respect to the proposed transaction. RATE OF RETURN ON STOCKHOLDERS’ EQUITYThe percentage return or profit that management made on each dollar stockholders invested in a company. Here’s how you figure it: RATIO OF DEBT TO STOCKHOLDERS’ EQUITYA ratio that shows which group—creditors or stockholders—has the biggest stake in or the most control of a company: Raw material supply agreementAs used in connection with project financing, an agreement to furnish a Redeemable Preferred StockA preferred stock issue that must be redeemed by the issuing enterprise or is redeemable at the option of the investor. Considered a debt security for accountingpurposes. Repurchase agreementAn agreement with a commitment by the seller (dealer) to buy a security back from Repurchase of stockDevice to pay cash to firm's shareholders that provides more preferable tax treatment Reverse stock splitA proportionate decrease in the number of shares, but not the value of shares of stock Revolving credit agreementA legal commitment wherein a bank promises to lend a customer up to a safety stocka buffer level of inventory kept on hand by a company in the event of fluctuating usage or unusual delays in lead time Safety stockExtra inventory kept on hand to guard against requirements Smithsonian agreementA revision to the Bretton Woods international monetary system which was signed at Standby agreementIn a rights issue, agreement that the underwriter will purchase any stock not purchased by investors. Standstill agreementsContracts where the bidding firm in a takeover attempt agrees to limit its holdings Stated value stockstock 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. StockOwnership of a corporation which is represented by shares which represent a piece of the corporation's STOCKCertificates that signify ownership in a corporation. A share of stock represents a claim on a portion of the company’s assets. StockSee inventory. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |