Vocab Flashcards
________ stock is stock that was issued and repurchased by the issuing corporation.
Treasury
True or False: Treasury stock has no voting rights and receives no dividends.
True
Issued stock - Treasury Stock= __________
Outstanding Stock
The _______ date is the date by which stock must be owned to receive the dividend.
record
The ex-dividend date occurs _______ business days ________ the record date.
2, before
Who are considered the owners of a corperation
common and preferred stockholders (holders of equity)
True or False: all owners have a right to vote.
False: only common shareholders may vote
Name Two issues on which common stockholders can vote.
Appointments to the Board of directors, stock splits,
What voting method permits one vote for each share owned to be voted for each director?
Statutory
This voting method allows stockholders to multiply the number of shares owned by the number of directorships.
Cumulative
True or False: Cumulative voting benefits smaller shareholders since they can concentrate votes for a specific director.
True, however it does not guarantee them representation on the board.
________ stock fluctuates with the business cycle
Cyclical (ex. Auto Makers)
_________ stock pays higher than average dividends.
income (Utility Companies)
_____ stock is resistant to recession.
defensive (health care, utilities, etc)
What Instruments are used to facilitate trading of foreign securities in the United States?
American Depository Receipts (ADR)
Warrants are a ______-term right to buy a stock at a preset price
Long
True or False: Warrants are generally attached to the delivery of another security (stock or bond).
True: they are usually added as sweeteners to bonds
what is the longest duration for a warrant?
perpetual (indefinite)
May a warrant be detached and traded separately?
Yes
Rights are a ______-term instrument allowing holders to buy additional shares at a discounted price.
short
What is the advantage of existing stockholders receive through tradings rights offerings?
The ability to maintain their percentage of ownership (to avoid ownership dilution), and buy additional shares at a discount.
Existing shareholders receive _______right for every one share owned.
one
Name two priorities that preferred stock has over common stock.
order of liquidation and dividends.
$______is normally the par value for preferred stock.
$100