Equity Securities Flashcards
Securities Act of 1933
“The Paper Act” requires prospectus and full disclosure filings for all non-exempt new issue securities, such as corporate stock and bond offerings.
Securities Exchange Act of 1934
” The People Act” Created the SEC
The Maloney Act of 1934
Established SROs, to regulate the over-the-counter market.
Security
A financial instrument that trades for value based on the expectation of profit from the efforts of third-party management.
To be considered a security
It must be easily transferable between parties.
It s owner must be subject to the risk of loss of a portion or the entire principle.
Capital Structure
The sum of all issued securities of a corporation.
Net Worth
Assets - Liabilities
Balance Sheet
summarizes a company’s assets, liabilities, and share holder equity.
Stated Value
value assigned to a corporation’s no-par stock on its financial statements.
Income Statement (Profit and Loss Statement)
a financial statement that shows a company’s performance over a specific accounting period ( such as a fiscal year)
Operating Margin
(Sales - Cost of Goods Sold - Selling, General & Administrative Costs) / Sales
Net Profit Margin
Taxes - Preferred Dividend) / Sales
Net Working Capital
Current Assets - Current Liabilities
Current Ratio
Current Assets / Current Liabilities
Common Stock Ratio
(Par Value of Common + Retained earnings + Paid-in Capitol) / Total Long-term Capitalization (Stockholders Equity + Bonds)
