Equities

Question 1

Common Stock

Answer 1

owned equity of shareholder who has an ownership piece of a company

Question 2

Who gets paid last in the event of company liquidation?

Answer 2

Common Stock

Question 3

Authorized Stock

Answer 3

the # of shares the company plans to issue to the public

Question 4

Par Value

Answer 4

the amount of a common stock

Question 5

What is the typical par value of a stock worth?

Answer 5

$100

Question 6

Issued stock

Answer 6

Stock that has been issued to public to raise capital

Question 7

Outstand shares

Answer 7

the amount of shares issued AFTER treasury stock has been repurchased

Question 8

Treasury stock

Answer 8

shares that the company rebought to keep for later resell or finance company

Question 9

What helps determine the earnings per share?

Answer 9

outstanding shares

Question 10

what stock can vote and get dividend payments?

Answer 10

outstanding shares

Question 11

what stock cannot vote or get dividend payments?

Answer 11

treasury stock

Question 12

regular way settlement for equities

Answer 12

t+1

Question 13

how can equities be traded?

Answer 13

on exchange or OTC

Question 14

residual

Answer 14

the leftover that common shareholders can claim during bankruptcy

Question 15

trade settlement date

Answer 15

date a security must be PAID for and DELIVERED by

Question 16

when is the investor the owner of the security

Answer 16

when purchased

Question 17

when is the investor the owner of record

Answer 17

when trade settles

Question 18

how are equity holders paid

Answer 18

cash dividend payments

Question 19

stock dividend

Answer 19

giving additional shares to existing stockholders

Question 20

what is the percentage of when stock distribution of outstanding shares are made

Answer 20

more than 25%

Question 21

forward stock split

Answer 21

company does this to make price per share more affordable for small shareholders

Question 22

reverse stock split

Answer 22

company does this to increase their share price and avoid delisting from stock exchanges

Question 23

interpret 2:1

Answer 23

2 - # of shares
1 - price per share

forward

Question 24

interpret 1:2

Answer 24

1 - # of shares
2 - price per share

reverse

Question 25

what must be adjusted in a stock split?

Answer 25

par value

Question 26

y/n is stock dividends taxed?

Answer 26

no

Question 27

y/n are stock splits taxed?

Answer 27

no

Question 28

preemptive rights

Answer 28

rights protecting shareholders from diluting their investments and keep ownership

Question 29

shareholders with rights can do what

Answer 29

sell to another investor, buy new shares at lower price, or let it expire

Question 30

preemptive rights long or short term?

Answer 30

short (weeks, couple months)

Question 31

earnings per share formula

Answer 31

earning available / common outstand shares

Question 32

dividend yield formula

Answer 32

annual income / MKT price

Question 33

P/E ratio formula

Answer 33

mkt price of security / EPS

Question 34

what is a multiple?

Answer 34

indicates the mkt price is "X" times (multiple) equals the EPS

Question 35

basic rights of common holders

Answer 35

vote for board, inspect books, preemptive, get distributions, right to corporate assets in default, transfer ownership, corp. changes

Question 36

items that shareholders can vote on

Answer 36

declare stock splits, issuing bonds/stocks

Question 37

items shareholders cant vote on

Answer 37

declaring dividends, stock div, preemptives

Question 38

3 voting methods

Answer 38

statutory, cumulative, proxy

Question 39

statutory voting

Answer 39

votes casted evenly

Question 40

cumulative voting

Answer 40

shareholder can vote for whatever they want

Question 41

proxy voting

Answer 41

where a proxy votes on behalf of non attending shareholders

Question 42

preferred stock

Answer 42

equity stock that has par, rate, and paid semi or quarter

Question 43

junior equity security

Answer 43

common

Question 44

senior equity security

Answer 44

preferred

Question 45

t/f preferred stock can vote and have preemptive?

Answer 45

false

Question 46

types of preferred stock

Answer 46

cumulative, callable, convertible, participating

Question 47

cumulative preferred

Answer 47

all preferred dividends must be paid if missed

Question 48

growth equity

Answer 48

common

Question 49

callable preferred

Answer 49

issuer can redeem shares back

Question 50

convertible preferred

Answer 50

shareholders can change preferred to common stock

Question 51

participating preferred

Answer 51

can get additional shares

Question 52

relationship between interest and preferred stock prices

Answer 52

inverse

Question 53

current yield formula

Answer 53

annual income / mkt price of security

Question 54

warrant

Answer 54

long term security attached with stock/bond to buy stock at a fixed price ABOVE mkt price

Question 55

ADR - american depository receipt

Answer 55

receipts issued for foreign stock

Question 56

outstand share formula

Answer 56

issued - treasury

Question 57

DERP

Answer 57

declaration, ex date, record, payable

Question 58

buy (before/after) ex-date to get dividend

Answer 58

before ex date

Question 59

sell (before/after) ex-date to get dividend

Answer 59

on or after exdate