![]() |
|
Financial Terms | |
Stock replacement strategy |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: tax advisor, finance, financial, investment, inventory control, credit, money, stock trading, Also see related: mortgage, financing, credit, homebuying, insurance, home, home financing, buy home, first time homebuyer, |
Definition of Stock replacement strategyStock replacement strategyA strategy for enhancing a portfolio's return, employed when the futures
Related Terms:Acquisition of stockA merger or consolidation in which an acquirer purchases the acquiree's stock. Active portfolio strategyA strategy that uses available information and forecasting techniques to seek a 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 Barbell strategyA strategy in which the maturities of the securities included in the portfolio are concentrated 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: Bullet strategyA strategy in which a portfolio is constructed so that the maturities of its securities are highly Buy-and-hold strategyA passive investment strategy with no active buying and selling of stocks from the capital stockOwnership shares issued by a business corporation. A business Capital StockThe total amount of plant, equipment, and other physical capital. Combination strategyA strategy in which a put and with the same strike price and expiration are either both 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 compensation strategya foundation for the compensation plan that addresses the role compensation should play in the organization Conflict between bondholders and stockholdersThese two groups may have interests in a corporation that confrontation strategyan organizational strategy in which company management decides to confront, rather than avoid, competition; an organizational strategy in which company management still attempts to differentiate company 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 leadership strategya plan to achieve the position in a 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 Covered call writing strategyA strategy that involves writing a call option on securities that the investor Cumulative preferred stockPreferred stock whose dividends accrue, should the issuer not make timely Dedication strategyRefers to multi-period cash flow matching. Departmental stocksThe informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock. differentiation strategya technique for avoiding competition by distinguishing a product or service from that of competitors through adding sufficient value (including quality and/or features) that customers are willing to pay 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 Immunization strategyA bond portfolio strategy whose goal is to eliminate the portfolio's risk against a Import-substitution development strategyA development strategy followed by many Latin American 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. Ladder strategyA bond portfolio strategy in which the portfolio is constructed to have approximately equal 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 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 Outbound stock pointA designated inventory location on the shop floor between Overlay strategyA strategy of using futures for asset allocation by pension sponsors to avoid disrupting the Passive investment strategySee: passive management. Passive portfolio strategyA strategy that involves minimal expectational input, and instead relies on 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 equity redemption stock (PERC)Preferred stock that converts automatically into equity at a 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 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. Protective put buying strategyA strategy that involves buying a put option on the underlying security that is Randomized strategyA strategy of introducing into the decision-making process a random element that is 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: 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. ReplacementThis subject of replacement of existing policies is covered because sometimes existing life insurance policies are unnecessarily replaced with new coverage resulting in a loss of valuable benefits. If someone suggests replacing your existing coverage, insist on having a comparison disclosure statement completed. Replacement Capital ExpendituresCapital expenditures required to replace productive Replacement-chain problemIdea that future replacement decisions must be taken into account in selecting Replacement costCost to replace a firm's assets. replacement costan amount that a firm would pay to replace an asset or buy a new one that performs the same functions as an asset currently held Replacement costThe cost that would be incurred to replace an existing asset with one having the same utility. Replacement cycleThe frequency with which an asset is replaced by an equivalent asset. Replacement partsParts requiring some modification before being substituted Replacement valueCurrent cost of replacing the firm's assets. Replacement ValueThe amount necessary to duplicate a company's assets at current Replacement ValueCost of acquiring a new asset to replace an existing asset with the same functional utility. 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 Spread strategyA strategy that involves a position in one or more options so that the cost of buying an 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. |