Term
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Definition
1. To receive any dividends paid by the corporation. 2. Realize a capital gain on the sale of their shares. |
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Term
Money Market * High Grade *Liquid Debt Securities *1yr Maturities |
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Definition
Transactions in short-term debt instruments.
1yr Maturity.
Commercial Banks are cheif source of MMK.
Demand from US Gov, Brokers, & Commercial Dealers. Intrest influenced by: Maturities, credit rating, demand. |
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Term
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Definition
Intrest rate charged on loans made by commercial banks to their best customers. |
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Term
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Definition
Withdraw funds from financial instiutions and invest them directly in the money markert. *Done when intrest rates on short-term securities are hight enough. |
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Term
Capital Market *Maturity Greater Then 1 yr |
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Definition
Long-term dept and equity instruments. Demand is businesses who need long-term funds. Supply is individuals seeking to invest. |
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Term
Common Stock *Greatest opportunity for capital gain. **Gain Unlimited **Loss is Limited |
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Definition
Limited Liability
Proportionate Ownership
Transfer Rights
Dividends
Corporate Books
Preemptive Rights
Voting
Protection
Dissolution
Stock Certificate
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Term
Treasury Stock *Reacquired |
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Definition
Does NOT vote. Does NOT receive Dividends. Shares are Not used in earnings per share calculations. ARE authorized and issued stock but NOT outstanding. On balance sheet as a deduction from issued stock. |
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Term
Dividends *Paid on Common or Prefereed Stock *ADR's |
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Definition
Sharing in the profits of a corporation. Paid from retained earnings, may not impair capital. Declared by Board of Directors, becomes a current liability and payment can be forced by shareholders. Affect the market price of stock. Paid out of earnings from prior years. |
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Term
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Definition
Negotiable, can be transferred. Transfer agent, commercial bank, issue new stock certificates then record on record book (old # same as new #) then sent to Registrar bank. Registered in Investors name or Street (broker) name. Margin account securities are ALL in street name. Signature Guarantee |
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Term
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Definition
# of shares the corporation has actually the power to issue. Stated in corporate charter. Requires a vote to increase the amount. |
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Term
Issued Common * = Outstanding Stock + Treasury Stock |
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Definition
Amount of stock corporation HAS issued. No Treasury stock then issued is equal to outstanding stock and is referred to issued and outstanding shares. |
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Term
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Definition
# of shares STILL available to be issued at a later date with no vote by stockholders. Does NOT vote. Does NOT receive Dividends. Shares are not used in earnings per share calculations. |
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Term
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Definition
Common Stock holder, votes for Board of Directors, changes in charter bylaws, changes in the purpose of the company. Regular (Satutory) or Cumulative voting. Proxy voting. |
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Term
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Definition
Price at which the stock was originally issued. Face Value. |
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Term
Book Value Stockholders equity - Preferred Stock - Intangible Assets / Common Shares Outstanding
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Definition
Tangible net asset value. Net worth of the corporation less tangible assets divided by the number of common shares outstanding. Affected by Stock Splits, Writing off Tangible Assets. Not affected by Market Price Changes, Writing off Intangible Assets. |
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Term
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Definition
1. Taxes. 2. Senior Lien Bonds. 3. Bank Loans, Accounts Payable, Debentures, Unsecured Debt. 4. Subordinate Debentures. 5. Preferred Stock. 6. Common Stock. |
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