01 Stock DIV

Question 1

Annual DIV written as

$6 = ?

Answer 1

% of Par

6%

Question 2

Reset Date

Answer 2

date of DIV adjustment for preferred stocks

(some have variable rates that are benchmarked on int)

Question 3

transfer agent (3)

Answer 3

1. cancel old & issue new
2. ownership records
3. distributes splits

Question 4

registrar

Answer 4

makes sure co. does not issue more shares than authorized

Question 5

net change

Answer 5

closing price from prev day

compared to current

Question 6

Yeild

Answer 6

= Annual DIV /

CMV

Question 7

Due Bill

Answer 7

stmt showing right to DIV

Question 8

Stock DIV

same as cash unless

Answer 8

same as cash unless

25% + shares outstanding

or stock splits 5:4 or better

Question 9

PE Ratio

SP $3

PE 14

MP ??

Answer 9

compares MP to earnings

14 x 3 = $42

Question 10

Total Return

Buy @ $10

MP Rises to $ 12

DIV Paid $1

Answer 10

Question 11

Stock Split Impact

• Value (# Shares x PPS)
• Number of Shares
• PPS - Price Per Share

Answer 11

• Value = same
• # Shares - change
• PPS - change

Question 12

Forward Split

• # Shares
• PPS (Price Per Share)

Reverse Split

• # Shares
• PPS

Answer 12

Forward Split

Increase # Shares, Lower Price 5:4

Reverse Split

Decrease # Shares, Higher Price 1:10

Question 13

Stock Split Formulas

Split Ratio (if given % DIV) 20% | 25%

Value

New # Shares

PPS

Answer 13

20% = 1.20 : 1

25% = 1.25 : 1

Question 14

Stock Split Formulas

Split Ratio (if given % DIV)

Value

New # Shares

PPS

Answer 14

Value = (# Shares) x (PPS)

Question 15

Stock Split Formulas

Split Ratio (if given % DIV)

Value

New # Shares

PPS

Answer 15

Question 16

Stock Split Formulas

Split Ratio (if given % DIV)

Value

New # Shares

PPS

Answer 16

Question 17

Stock Split

Calculate New Price Per Share

5:4 Split | 100 Shares @ $50

Ratio:

Value:

New Shares:

PPS:

Answer 17

Ratio 5:4

Value: 1000 x 50 = 5000

New # Shares 100 x 5 / 4 = 125

PPS 5000 / 125 = $40

New # Shares = (# Shares x 1st Number) / (2nd Number)

PPS = Current Value / # New Shares

Question 18

ABC declared 25% stock DIV

new shares @ what price

100 @ $50

1. Ratio
2. Value
3. # Shares
4. PPS

Answer 18

Ratio: 1.25: 1

Value: 5000

# Shares: 100 x 1.25 / 1 = 125

PPS: 5000 / 125 = 40

Question 19

ABC declared 20% stock DIV

new # shares & PPS

200 @ 60

Answer 19

240 @ $50

Ratio: 1.20 : 1

Value: 12,000

New Shares: 240

PPS: 50

New # Shares = (# Shares x 1st Number) / (2nd Number)

PPS = Current Value / # New Shares

Question 20

Settlement

Regular Purchase

Cash

Answer 20

Regular Purchase

3 bus days after trade

Cash

same date as trade

Question 21

DIV Payments

• Declaration Date
• Record Date
• Ex Date
• Payable Date

Answer 21

Co. Announces DIV

10 business days before distribution decisions (record date)

to FINRA

Question 22

DIV Payments

• Declaration Date
• Record Date
• Ex Date
• Payable Date

Answer 22

determine who receives DIV

(who owns on this day receives, payable later)

10th business day after declaration

Question 23

DIV Payments

• Declaration Date
• Record Date
• Ex Date
• Payable Date

Answer 23

purchase on this date or after no DIV

Set by NYSE

regular way - 2 days prior record date

cash settle - day after record date

Question 24

DIV Payments

• Declaration Date
• Record Date
• Ex Date
• Payable Date

Answer 24

$ distributed

3-4 weeks after declaration date

Question 25

Stocks trading above ?

1 share = 1 round lot

Answer 25

175