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Definition of Shareholder
Owner of one or more shares of stock in a corporation.
Represents the total assets of a corporation less liabilities.
Increasing the value of the business to its shareholders, achieved through a combination of
This is a company's total assets minus total liabilities. A company's net worth is the
The total amount of contributed capital and retained earnings; synonymous with stockholders' equity.
The residual interest or owners' claims on the assets of a corporation
The capital invested in a business by the shareholders, including retained profits.
A section of an annual report where one can find jargon-free discussions by
Cumulative gains or losses reported in shareholders'
For investment companies, the management fee and "other expenses,"
Yearly record of a publicly held company's financial condition. It includes a description of the
A report issued to a company’s shareholders, creditors, and regulatory
A clause in a shareholders agreement preventing a company from issuing additional shares, without allowing the current shareholders the opportunity to participate in the offering to avoid dilution of their percentage ownership.
A right of shareholders in a merger to demand the payment of a fair price for their shares, as
A group of shareholders banding together to vote their shares in a single block.
This 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.
The shareholders’ investment in the business; the difference between the assets and liabilities
A dividend paid in cash to a company's shareholders. The amount is normally based on
Payment of cash by the firm to its shareholders.
Common stock/other equity
Value of outstanding common shares at par, plus accumulated retained
Cost company arrangement
Arrangement whereby the shareholders of a project receive output free of
Credit unions are community based financial co-operatives and most offer a full range of services. All are owned and controlled by members who are also shareholders. Credit unions are regulated provincially and insured by a stabilization fund, deposit insurance or guarantee corporation.
A system of voting for directors of a corporation in which shareholder's total number of
Voting system in which all the votes one shareholder is allowed to cast can be cast for one candidate for the board of directors.
Indicator of financial leverage. Compares assets provided by creditors to assets provided
Payments from fund or corporate cash flow. May include dividends from earnings, capital
A dividend is a portion of a company's profit paid to common and preferred shareholders. A stock
The payment of after-tax profits to shareholders as their share of the profits of the business for an accounting period.
A payment made to shareholders that is proportional to the number of shares
Periodic cash distribution from the firm to its shareholders.
Unlike dividends which are paid to company shareholders, participating insurance policy dividends are not based on the company's overall profits. Rather, they are determined by grouping policies by type and country of issue and looking at how each class contributes to the company's earnings and surplus.
A group of shareholders who prefer that the firm follow a particular dividend policy. For
dividend growth method
a method of computing the cost
Dividend reinvestment plan (DRP)
Automatic reinvestment of shareholder dividends in more shares of a
A shareholders' rights to receive per-share dividends identical to those other shareholders receive.
Profits paid out to shareholders by a corporation.
Dividends per share
Amount of cash paid to shareholders expressed as dollars per share.
Earnings per Share
A measure of the earnings generated by a company on a per
Funds raised from shareholders.
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.
The percentage of the assets that were spent to run a mutual fund (as of the last annual
Risk to shareholders resulting from the use of debt.
The practice of reporting to shareholders using straight-line depreciation and
A measure of the extent of long-term debt in comparison with shareholders’ funds.
A group of shareholders who, because of their personal leverage, seek to invest in
When a firm's business is terminated, assets are sold, proceeds pay creditors and any leftovers
Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.
A report from management to the shareholders that accompanies the firm's
The difference between the total assets and total liabilities of a company. Note: The value of the preferred shares is deducted from the net worth because the preferred's are usually redeemed before any value is paid to the common shareholders.
The practice of making a charge in the income account equivalent to the tax savings
In a rights issue, arrangement by which shareholders are given the right to apply
That part of the issued capital of a company that has been paid up by the shareholders.
The date on which each shareholder of record will be sent a check for the declared dividend.
Shares of stock given to managers on the basis of performance as measured by earnings
Anit-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the
Measure taken by a target firm to avoid acquisition;
Preferred shares give investors a fixed dividend from the company's earnings. And more
Profit Margin Ratio
A measure of how much profit is earned on each dollar of sales. It
Document intended to provide shareholders with information necessary to vote in an informed manner
A battle for the control of a firm in which the dissident group seeks, from the firm's other
Takeover attempt in which outsiders compete with management for shareholders’ votes. Also called proxy fight.
1) Date by which a shareholder must officially own shares in order to be entitled to a dividend.
The date used to decide which shareholders will receive the dividend. The owners of the shares at the end of this day are entitled to the dividend.
Repurchase of stock
Device to pay cash to firm's shareholders that provides more preferable tax treatment
Lost wealth of the shareholders due to divergent behavior of the managers.
A company’s accumulated earnings since its inception, less any distributions to shareholders.
Return on capital employed (ROCE)
The operating profit before interest and tax as a percentage of the total shareholders’ funds plus
Return on Common Equity Ratio
A measure of the percentage return earned on the value of the
Return on investment (ROI)
The net profit after tax as a percentage of the shareholders’ investment in the business.
Return on Total Assets Ratio
A measure of the percentage return earned on the value of the
Reverse stock split
A proportionate decrease in the number of shares, but not the value of shares of stock
A short-lived (typically less than 90 days) call option for purchasing additional stock in a firm, issued
Issuance of "rights" to current shareholders allowing them to purchase additional shares,
Set of contracts perspective
View of corporation as a set of contracting relationships, among individuals
Sole owner of a business which has no partners and no shareholders. The proprietor is personally liable for all the firm’s obligations.
Units 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.
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend
Firm buys back stock from its shareholders.
The total amount of contributed capital and retained earnings; synonymous with shareholders’ equity.
A shareholder may cast all of his votes for each candidate for the board of directors.
strategic resource management
organizational planning for the deployment of resources to create value for customers and shareholders; key varibles in the process include the management of information and the management of change in response to threats and opportunities
Price that the existing shareholders are allowed to pay for a share of stock in a rights offering.
Provision in a company's charter requiring a majority of, say, 80% of shareholders to approve
General term referring to transfer of control of a firm from one group of shareholder's to another
Tax differential view ( of dividend policy)
The view that shareholders prefer capital gains over dividends,
A merger or consolidation that is not a tax-fee acquisition. The selling shareholders are
General offer made publicly and directly to a firm's shareholders to buy their stock at a price
Takeover attempt in which outsiders directly offer to buy the stock of the firm’s shareholders.
Total debt to equity ratio
A capitalization ratio comparing current liabilities plus long-term debt to
Transferable put right
An option issued by the firm to its shareholders to sell the firm one share of its
Two-tier tax system
A method of taxation in which the income going to shareholders is taxed twice.
Stock that has been authorized for use, but which has not yet been
A variety of approaches that emphasize increasing shareholder value as the primary goal of every business.
weighted average cost of capital
a composite of the cost of the various sources of funds that comprise a firm’s capital structure; the minimum rate of return that must be earned on new investments so as not to dilute shareholder value
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