Common Stock And Preferred Stock Flashcards
Dividends
Periodic payment either in cash or stock made by the company to owners of its common or preferred stock.
Market value
Reflex investors knowledge and belief about company’s present and future profitability the likelihood of dividend payments the health of the industry.
American depository receipts (ADRs)
Certificates representing shares of foreign companies.traded in the United States the actual shares are held in the country of origin by an American bank.
Blue-chip
Category of common stock. Stock of a big well-known company with a long history of profits and regular dividend payments.
Income
Category of common stock. stock of companies that have good records and being relatively high and stable dividend
Growth
Category of common stock. stock of a company that is expanding rapidly by investing in its own growth with profits that otherwise my Have become dividend payments.
Common stockholders rights
- receive dividends
- Certificate of stock ownership
- transfer securities / sell stock
- inspect company’s financial records
- vote
- maintain proportionate share of the companies ownership
- Liquidated assets
transfer agent
Firm that maintains records of a corporation stock and bond mailing in and canceling stock certificates as needed.
Registrar
Person or business who works with the company’s transfer agent to maintain records of stock and bond owners. The registrar duties include ensuring that outstanding stock does not exceed the amount to authorized in the corporate charter.
Street name
In the name of the broker dealer. Securities purchased on margin are held in the street name until the customer has paid for them in full. Also, securities are often held in the street name to facilitate it down after A sale.
Book entry method
Conducting stock transactions without certificate changing hands and transfers are recorded as changes in customers accounts.
Statutory voting
Most common form of shareholder voting. stockholders receive one vote for each ballot item.
Cumulative voting
Form of voting that enables shareholders to distribute their total votes. still calculated by one vote per share. Per voting matter as they see fit.
Stock split
Corporate actions that multiplies the number of a company’s outstanding shares by a certain ratio. The market price of the stock is adjusted downward accordingly.
Reverse split
Increases the price of each share while reducing the number of shares in circulation.
