|Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior|
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Definition of Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. preferred stock typically does not carry the right to vote.
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full
A merger or consolidation in which an acquirer purchases the selling firm's assets.
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
Legal document establishing a corporation and its structure and purpose.
A firm's productive resources.
Anything of value that a company owns.
Things that the business owns.
Items owned by the company or expenses that have been paid for but have not been used up.
A common element of a financial plan that describes projected capital spending and the
Floating rate preferred stock, the dividend on which is adjusted every
Gives the lessee the option to purchase the asset at a price below fair market
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:
Canadian Deposit Insurance Corporation
Better known as CDIC, this is an organization which insures qualifying deposits and GICs at savings institutions, mainly banks and trust companys, which belong to the CDIC for amounts up to $60,000 and for terms of up to five years. Many types of deposits are not insured, such as mortgage-backed deposits, annuities of duration of more than five years, and mutual funds.
Ownership shares issued by a business corporation. A business
The total amount of plant, equipment, and other physical capital.
Request for payment of benefits under the terms of an insurance policy.
A reduction in the likelihood one or more of the firm's claimants will be fully repaid,
A party to an explicit or implicit contract.
Person or party making request for payment of benefits under the terms of an insurance policy.
A transaction in which the purchaser's intention is to reduce or eliminate a short position in
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
A claim that can be made only if one or more specified outcomes occur.
Controlled foreign corporation (CFC)
A foreign corporation whose voting stock is more than 50% owned
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.
A legal "person" that is separate and distinct from its owners. A corporation is allowed to own
A legal entity, organized under state laws, whose investors purchase
Business owned by stockholders who are not personally
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
Cumulative preferred stock
preferred stock whose dividends accrue, should the issuer not make timely
Value of cash, accounts receivable, inventories, marketable securities and other assets that
Cash, things that will be converted into cash within a year (such as accounts receivable), and inventory.
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Current refers to cash and those assets that will be turned
Cash and other company assets that can be readily turned into cash within one year.
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.
Disclaimer of opinion
An auditor's statement disclaiming any opinion regarding the company's financial
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Amounts paid to the owners of a company that represent a share of the income of the company.
Profits paid out to shareholders by a corporation.
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
Dividends per share
dividends paid for the past 12 months divided by the number of common shares
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
Earnings per share of common stock
How much profit a company made on each share of common stock this year.
Specialized banking institutions, authorized and chartered by the Federal Reserve Board
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.
Also called a residual claim, a claim to a share of earnings after debt obligation have been
Exchange of assets
Acquisition of another company by purchase of its assets in exchange for cash or stock.
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
Extra or special dividends
A dividend that is paid in addition to a firm's "regular" quarterly dividend.
Federal Deposit Insurance Corporation (FDIC)
A federal institution that insures bank deposits.
claims on real assets.
claims to the income generated by real assets. Also called securities.
Things that the business owns and are part of the business infrastructure – fixed assets may be
An informal term that refers to the variety of long-term operating
Land, buildings, plant, equipment, and other assets acquired for carrying on the business of a company with a life exceeding one year. Normally expressed in financial accounts at cost, less accumulated depreciation.
Fixed Assets Turnover Ratio
A measure of the utilization of a company's fixed assets to
preferred stock paying dividends that vary with short-term interest rates.
Low-cost, high-usage inventory items stored near the shop floor,
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
Freddie Mac (Federal Home Loan Mortgage Corporation)
A Congressionally chartered corporation that
A phase of development in which a company experiences rapid earnings growth as it produces
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.
Process by which a company receives its Articles of Incorporation allowing it to operate as a corporation.
information content of dividends
Dividend increases send good news about cash flow and earnings. Dividend cuts send bad news.
assets owned by the company that do not possess physical substance; they usually take the form of rights and privileges such as patents, copyrights, and franchises.
Intangible fixed assets
Non-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks).
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.
Value of property, equipment and other capital assets minus the depreciation. This is an
Longer-Term Fixed Assets
assets having a useful life greater than one year but the duration of the 'long term' will vary with the context in which the term is applied.
A 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 theory
A biased expectations theory that asserts that the
claims that can be bought and sold in financial markets, such as those of stockholders and
A phase of company development in which earnings continue to grow at the rate of the
For mutual funds, the amount required to open a new account (Minimum Initial
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