01 Stock Flashcards
Dividend Tax Indv
taxed in year received
Dividend Tax Corp
70% exclusion of DIV from other Corp
Common Stock Types
1 Authorized
2 Issued
3 Treasury
4 Outstanding
in charter may issue or sell for increase stockholder vote
Common Stock Types
1 Authorized
2 Issued
3 Treasury
4 Outstanding
distributed to investors
Common Stock Types
1 Authorized
2 Issued
3 Treasury
4 Outstanding
issued and co. repurchased no voting or DIV
Common Stock Types
1 Authorized
2 Issued
3 Treasury
4 Outstanding
issued - treasury
Par Value
- Definition
- Effect on stock mkt price
- Value company gives in articles
- no
Capital in excess of par / surplus
stock sold higher than par
Book Value
amount stockholder rcvs if co. liquidated
assets - liabilities / outstanding shares
Statutory vs. Cumulative
100 shares
3 ballet items
= ? Votes
300 votes
STATCUM
100 200 or 300
100 60
100 40
Stock Voting ?
- Class A
- Class B
- Voting
- Non voting
Stockhoder Rights
Antidilustion Provision
Preemptive Right
Residual Claim / Right
additional stock 1st offered to stock holders before public
purchase new stock to keep = ownership
right to get $ in backruptcy
limited liability
stockholders do not pay co debt on bankruptcy
junior security
stock - last in line liquidation
Preferred Stock
- Ownership
- Dividends
- Bankruptcy
- Pricing
- Ownership - yes, not same voting rights
- Dividends - fixed semi-annual,
not guarenteed
- Bankruptcy - paid 1st
- Pricing - based in interest,
inverse relation like bonds
Preferred Stock Types
straight preferred
cumulative preferred
patricipating preferred
straight
missed DIV not paid
cumulative
missed DIV paid before common
patricipating
% corp profits
Right
vs
Warrent
vs
Callable
Right - investor buy below MP
Warrent - investor opp to buy in future @ specific price
Call - co. can buy back after specific date
callable / redeemable
co. can buy back after specific date
stock power
doc used to transfer ownership
Rights Offering
buy stock below current mkt price
subscription right
defined - $, date, #
30-45 days to by additional shares
Value of a Right
- Before Ex Date
- After Ex Date
Warrent
1 - Traded Where?
2 - DIV - Y / N
3 - Voting - Y / N
4 - Benefits
1 - Traded - 2nd mkt
2 - DIV - N
3 - Voting - N
4 - Benefits
- leverage
- long - term
- right to future purchase @ specific price
ADR
- definition
- voting
- taxes
- risk
American Depository Receipts
1. stocks in foreign corp, in US $
- no vote
- pay foreign taxes - credit on US taxes
- currancy
Custodian Bank
foreign branches of US Banks
issue ADRs
sells in US not foreign mkt
ADR
risk
currency
