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Definition of Stockholder
A person or entity that owns shares in a corporation.
Holder of equity shares in a firm.
These two groups may have interests in a corporation that
The percentage return or profit that management made on each dollar stockholders invested in a company. Here’s how you figure it:
A ratio that shows which group—creditors or stockholders—has the biggest stake in or the most control of a company:
Balance sheet item that includes the book value of ownership in the corporation. It
Set of books kept by firm management for its annual report that follows Financial
The residual claims that stockholders have against a firm's assets, calculated by
The total amount of contributed capital and retained earnings; synonymous with shareholders’ equity.
Although often considered
The value of the owners’ interests in a company.
Conflicts of interest among stockholders, bondholders, and managers.
The ratio of total assets to stockholder equity.
Arises when the stockholders substitute riskier assets for the firm's existing
A firm's required payout to the bondholders and to the stockholders expressed as a
A “snapshot” statement that freezes a company on a particular day, like the last day of the year, and shows the balances in its asset, liability, and stockholders’ equity accounts. It’s governed by the formula:
Total Assets = Total Liabilities + Total stockholders' Equity
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
BOOK VALUE OF COMMON STOCK
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:
Book value per share
The ratio of stockholder equity to the average number of common shares. Book value
The makeup of the liabilities and stockholders' equity side of the balance sheet, especially
CARs (cumulative abnormal returns)
a measure used in academic finance articles to measure the excess returns an investor would have received over a particular time period if he or she were invested in a particular stock.
A company that pays out all earnings per share to stockholders as dividends. Or, a company or
Cash Flow Provided or Used from Financing Activities
Cash receipts and payments involving
CASH FLOWS FROM OPERATIONS
A section on the cash-flow stockholders’ equity statement that shows how much cash came into a company and how much went out during the normal course of business.
A financial security that represents an ownership claim on the
Common stock ratios
Ratios that are designed to measure the relative claims of stockholders to earnings
Controlled foreign corporation (CFC)
A foreign corporation whose voting stock is more than 50% owned
Business owned by stockholders who are not personally
Cost of Equity
Same as the cost of common stock. Sometimes viewed as the
Indicator of financial leverage. Compares assets provided by creditors to assets provided
A payment a company makes to stockholders. Earnings before income tax. The profit a company made
Total assets divided by total common stockholders' equity; the amount of total assets per
Date that determines whether a stockholder is entitled to a dividend payment; anyone holding stock before this date is entitled to a dividend.
The firm makes a tender offer for a given amount of its own stock while excluding
a discipline in which historical, monetary
Debt financing amplifies the effects of changes in operating income on the returns to stockholders.
The risk that the cash flow of an issuer will not be adequate to meet its financial obligations.
Decisions concerning the liabilities and stockholders' equity side of the firm's balance
Trading by officers, directors, major stockholders, or others who hold private inside
Involuntary liquidation preference
A premium that must be paid to preferred or preference stockholders if
Measures of the relative contribution of stockholders and creditors, and of the firm's ability
Indicator of financial leverage. Shows long-term debt as a proportion of the
Claims that can be bought and sold in financial markets, such as those of stockholders and
Common stockholders' equity which consists of common stock, surplus, and retained earnings.
Book value of common stockholders’ equity plus preferred stock.
Generally, the proportion of earnings paid out to the common stockholders as cash dividends.
Common stockholder's right to anything of value distributed by the company.
A security that shows ownership in a corporation and gives the holder a claim, prior to the
Compares a stock's market value to the value of total assets less total liabilities (book
Indicator of profitability. The ratio of earnings available to stockholders to net sales.
Document intended to provide shareholders with information necessary to vote in an informed manner
Return on equity (ROE)
Indicator of profitability. Determined by dividing net income for the past 12
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Reverse stock split
A proportionate decrease in the number of shares, but not the value of shares of stock
Issue of securities offered only to current stockholders.
Program by which a corporation buys back its own shares in the open market. It is usually
The total amount of contributed capital and retained earnings; synonymous with stockholders' equity.
All parties that have an interest, financial or otherwise, in a firm - stockholders, creditors,
A document that identifies a stockholder’s ownership share in a corporation.
Distribution of additional shares to a firm’s stockholders.
Issue of additional shares to firm’s stockholders.
the acquisition of managerial control of the corporation
Set of books kept by a firm's management for the IRS that follows IRS rules. The stockholder's
The mirror image of the asset substitution problem, wherein stockholders refuse
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