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Preferred stock |
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Definition of Preferred stockPreferred 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.
Related Terms:Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every 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 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 Non-cumulative preferred stockpreferred stock whose holders must forgo dividend payments when the Preferred stock agreementA contract for preferred stock. 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. 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. Preferred equity redemption stock (PERC)preferred stock that converts automatically into equity at a Asset CoverageExtent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position. Balanced mutual fundThis is a fund that buys common stock, preferred stock and bonds. The same as a ![]() Big BoardA nickname for the New York stock Exchange. Also known as The Exchange. More than 2,000 Call optionAn option contract that gives its holder the right (but not the obligation) to purchase a specified Capital StructureThe combination of debt, preferred stock, and common stock used Cash flow coverage ratioThe number of times that financial obligations (for interest, principal payments, Cash flow per common shareCash flow from operations minus preferred stock dividends, divided by the Common StockA financial security that represents an ownership claim on the Common stock marketThe market for trading equities, not including preferred stock. Convertible securityA security that can be converted into common stock at the option of the security holder, CovenantsProvisions in a bond indenture or preferred stock agreement that require the bond or preferred Dividend rateThe fixed or floating rate paid on preferred stock based on par value. Drop lockAn arrangement whereby the interest rate on a floating rate note or preferred stock becomes fixed Exchange offerAn offer by the firm to give one security, such as a bond or preferred stock, in exchange for Fixed-income instrumentsAssets that pay a fixed-dollar amount, such as bonds and preferred stock. Fixed-income marketThe market for trading bonds and preferred stock. Floating-rate preferredpreferred stock paying dividends that vary with short-term interest rates. Long-term debt/capitalizationIndicator of financial leverage. Shows long-term debt as a proportion of the Monthly income preferred security (MIP)preferred stock issued by a subsidiary located in a tax haven. net worthBook value of common stockholders’ equity plus preferred stock. New York Stock Exchange (NYSE)Also known as the Big Board or The Exhange. More than 2,00 common Preference stockA security that ranks junior to preferred stock but senior to common stock in the right to Preferred sharespreferred shares give investors a fixed dividend from the company's earnings. And more The ExchangeA nickname for the New York stock exchange. Also known as the Big Board. More than Weighted Average Cost of Capital (WACC)The weighted average of the costs of the capital components Acquisition of stockA merger or consolidation in which an acquirer purchases the acquiree's stock. American Stock Exchange (AMEX)The second-largest stock exchange in the United States. It trades 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: capital stockOwnership shares issued by a business corporation. A business Capital StockThe total amount of plant, equipment, and other physical capital. Common stockThese are securities that represent equity ownership in a company. Common shares let an Common stockShares of ownership sold to the public. 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/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 Cost of Common StockThe rate of return required by the investors in the common stock of 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. 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. Exchange of stockAcquisition of another company by purchase of its stock in exchange for cash or shares. Floor stocksLow-cost, high-usage inventory items stored near the shop floor, 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. 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 No par value stockstock issued by the company that does not have an arbitrary value (par value) assigned to it. Nonqualified Stock OptionA stock option not given any favorable tax treatment Outbound stock pointA designated inventory location on the shop floor between Philadelphia Stock Exchange (PHLX)A securities exchange where American and European foreign Preferred BeneficiaryUsed in older contracts to confer the same rights as an irrevocable beneficiary. Applied to family members. 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 SharesAre equity instruments that take no security against assets, have flexible terms of repayment and pay fixed or floating dividends. 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: 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 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 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. StockUnits of ownership, also called shares, in a public corporation. Owners of such units, called shareholders, share in the earnings of the company through dividends. The price of a stock is determined by supply and demand in the stock market. StockAny item held in inventory. stock appreciation righta right to receive cash, stock, or a combination of cash and stock based on the difference between a specified dollar amount per share of stock and the quoted market price per share at some future date Stock certificateA document that identifies a stockholder’s ownership share in a corporation. Stock dividendPayment of a corporate dividend in the form of stock rather than cash. The stock dividend stock dividendDistribution of additional shares to a firm’s stockholders. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |