Stocks Flashcards
Warrants
Allow for purchase of common stock fixed price
Do not give holders voting rights
Dividend payout ratio
3 million shares outstanding cash dividend $1
After tax earning 7.5 million
3m/1 =3x7.5
40%
Falling interest rates and positive yield curve which bond will appreciate the most
Bonds with long term maturities and selling at a discount will appreciate most
Sell orders for equity securities
Must be marked long or short
Stock undergoes a split the client has
No effective change in the value of the position because the proportionate interest in the company remains the same
Market interest rates have risen steadily over the past several months
Market price reflect the biggest impact
Preferred stock
Utility stock
Have a high degree of debt leverage
And are considered internet rate sensitive
Convertible debentures offer which benefit to investors
Upside potential of a common stockholder with less downside risk
During a period when tiled curve is inverted
Short term rates are more volatile than long term rates
Not common for strips and bills
Quoted as a percentage of par 32nds
T bills are short term and quoted on a discount yield basis
A pre-refunded bond yikes that is shown is
Yield to call
When investing in ADRs least likely risk is
Liquidity risk
Because they are actively traded so it isn’t much risk
SEC rules require that open-end management companies distribute dividends to their investors from
Net Investment Income
Dividend payout ratio
Shares outstanding/ after tax earnings
