SIE Unit 2 Flashcards
Authorized Stock
Number of shares that the company is authorized to issue (set by BOD at time of corporate charter writing)
Issued Stock
Authorized stock that has been sold to investors
Outstanding Stock
All shares in the hands of investors
Treasury Stock
Stock a corporation has issued and subsequently reacquired
Qualifications of Established Customers
Held an account with BD for at least one year, has made at least three penny stock purchases of different issuers on different days
Penny Stock Cold Calling Rules
BD must disclose the name of the stock, the number of shares to be purchased, the current quote, and amount of commission that the firm and representative received
Statutory Voting
Allows a stockholder to cast one vote per share owned for each item on a ballot
Cumulative Voting
Allows stockholders to allocate their total votes in any manner they choose
Straight Preferred Stock
No special features beyond stated dividend payment
Cumulative Preferred Stock
Accrues payments due to its shareholders in the event that dividends are reduced or suspended
Callable Preferred Stock
Stock a company can buy back from investors at a stated price after a specified date
Convertible Preferred Stock
Convertible if owner exchanged shares for a fixed number of shares of common stock
Adjustable-Rate Preferred Stock
Issued with adjustable dividend rates
Participating Preferred Stock
Offers owners a share of corporate profits that remain after all dividends and interest due are paid
American Depository Reciepts
Receipts that have converted foreign currency into dollars and are easily tradeable in the markets
