Equity Securities

Question 0

Dividends

Answer 0

Is portion of company's net profit:
Cash
Stock dividend 
Treasury stock
Products

Question 1

Common stock

Answer 1

Equity security, not a fixed income, dividends paid on quarterly basis

Question 2

Warrants

Answer 2

Long term option to buy a sick at a specified price(want to) trade separately. No dividends on warrants. Issued with debentures. Exercising could cause dilution, do not protect investors from dilution

Question 3

Subscription rights/preemptive rights:

Answer 3

Are a short term privilege granted by a corporation to existing common shareholders which give them the opportunity to subscribe to proportionate number of newly issued shares at a price that is lower than the public offering

Question 4

Preemptive rights clause

Answer 4

Clause in corporations charter that sets forth the requirement to offer existing shareholders preemp rights

Question 5

Rights offering

Answer 5

Existing shareholders receive own right for each share of common stock they hold

Max of 90 days

Question 6

Right holder may:

Answer 6

Use rights to subscribe thur transfer agent
Sell their rights
Let rights expire

Question 7

Preferred stock

Answer 7

Equity security, has priority over common stock in receiving div and sharing in assets, owners not creditors. Is a fixed income security, because of div.