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Financial Terms | |
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 priorPreferred 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.
Related Terms:Absolute priorityRule in bankruptcy proceedings whereby senior creditors are required to be paid in full Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. 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 Articles of incorporationLegal document establishing a corporation and its structure and purpose. AssetsA firm's productive resources. ![]() ASSETSAnything of value that a company owns. AssetsThings that the business owns. AssetsItems owned by the company or expenses that have been paid for but have not been used up. Assets requirementsA common element of a financial plan that describes projected capital spending and the Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Beta equation (Stocks)The beta of a stock is determined as follows: 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: Canadian Deposit Insurance CorporationBetter 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. capital stockOwnership shares issued by a business corporation. A business Capital StockThe total amount of plant, equipment, and other physical capital. ClaimRequest for payment of benefits under the terms of an insurance policy. Claim dilutionA reduction in the likelihood one or more of the firm's claimants will be fully repaid, ClaimantA party to an explicit or implicit contract. ClaimantPerson or party making request for payment of benefits under the terms of an insurance policy. Closing purchaseA transaction in which the purchaser's intention is to reduce or eliminate a short position in 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 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 Contingent claimA 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 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. CorporationA legal "person" that is separate and distinct from its owners. A corporation is allowed to own CorporationA legal entity, organized under state laws, whose investors purchase corporationBusiness owned by stockholders who are not personally 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 Current assetsValue of cash, accounts receivable, inventories, marketable securities and other assets that Current assetsCash, things that will be converted into cash within a year (such as accounts receivable), and inventory. Current assetsAmounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments. current assetsCurrent refers to cash and those assets that will be turned Current AssetsCash and other company assets that can be readily turned into cash within one year. 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. Disclaimer of opinionAn auditor's statement disclaiming any opinion regarding the company's financial Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. DividendsAmounts paid to the owners of a company that represent a share of the income of the company. DividendsProfits paid out to shareholders by a corporation. Dividends per shareAmount of cash paid to shareholders expressed as dollars per share. Dividends per sharedividends 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 stockHow much profit a company made on each share of common stock this year. Edge corporationsSpecialized banking institutions, authorized and chartered by the Federal Reserve Board 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 claimAlso called a residual claim, a claim to a share of earnings after debt obligation have been Exchange of assetsAcquisition of another company by purchase of its assets in exchange for cash or stock. Exchange of stockAcquisition of another company by purchase of its stock in exchange for cash or shares. Extra or special dividendsA 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. Financial assetsclaims on real assets. financial assetsclaims to the income generated by real assets. Also called securities. Fixed assetsThings that the business owns and are part of the business infrastructure – fixed assets may be fixed assetsAn informal term that refers to the variety of long-term operating Fixed AssetsLand, 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 RatioA measure of the utilization of a company's fixed assets to 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, 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 Growth phaseA phase of development in which a company experiences rapid earnings growth as it produces 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. IncorporationProcess by which a company receives its Articles of Incorporation allowing it to operate as a corporation. information content of dividendsDividend increases send good news about cash flow and earnings. Dividend cuts send bad news. Intangible assetsassets 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 assetsNon-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks). 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. Long-term assetsValue of property, equipment and other capital assets minus the depreciation. This is an Longer-Term Fixed Assetsassets 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. 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 Marketed claimsclaims that can be bought and sold in financial markets, such as those of stockholders and Maturity phaseA phase of company development in which earnings continue to grow at the rate of the Minimum purchasesFor mutual funds, the amount required to open a new account (Minimum Initial Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |