equities Flashcards
what are the constitutional documents of a company more commonly known as?
memorandum of association
articles of association
when a shareholder appoints someone to vote on their behalf at a company meeting, what is this referred to as ?
voting as proxy
what are the features of a cumulative preference share?
dividend entitlement accumulates, assuming sufficient profit the shareholder will have the arrears of dividend paid in the subsequent year
Why might a company have a higher than average dividend yield
company is mature and continues to generate healthy levels of cash, but has limited growth potential as gov could regulate selling prices therefore surplus profits is paid out in dividend.
what options are available to an investor in a rights issue?
the right to buy shares so that their proportionate holding is not diluted. a rights share can be defined as an offer of new shares to existing shareholders, pro rata to their initial holdings.
under what type of corporate action would an investor receive additional shares without making any payment.
a bonus issue is a corporate action when the company gives existing shareholders extra shares without having to subscribe further funds. also known as a scrip or capitalisation issue.
which body is responsible for approving the listing companies on the London Stock Exchange
The United Kingdom Listing Authority
what is the function of a stock market index?
these indices provide a snapshot of how share prices are progressing across the whole group of constituent companies.
The CAC 40 index relates to which market
the French market
what is a key characteristic of an order driven system
auction process, t match buyers with sellers. in both cases buyers and sellers are matched in strict chronological order by price and the quantity of shares being traded and do not require markets makers.
