Chapter 7
Order by
29 terms
Terms | Definitions |
|---|---|
 Preemptive Rights | Allows common stockholders to maintain their proportionate ownership in the corporation when new shares are issued |
| Dilution of Ownership | Occurs when a new stock issue resutls in each president shareholders ahving a claim on a smaller part of the firms earnings |
| Rights | Allow stockholders to purchase additonal shares at a price below the market price |
| Authorized Shares | # of shares of common stock that a firms corporate charter allow it to issue |
| Outstanding Shares | Number of shares of common stock held by the public |
| Treasury Stock | Number of shares of outstanding stock that have been repurchased |
| Issued Shares | Combination of both outstanding and treasury |
| Super Voting Shares | stock that carries with it multiple votes per share |
| Non Voting Common Stock | Carries no voting rights |
| Proxy Statement | A statement transferring the votes of a stockholder to another party |
| Proxy Battle | Attempt by a non management group to gain control of the management |
| ADR | Dollar denominated receipts for the stocks of foreign companies that are held in the vaults of banks |
| ADS | Securties backed by ADR that permit US investors to hold shares |
| Par Value Preferred Stock | Preferred Stock with a stated face value that is used with the specified dividend % to determine the annual dollar dividend |
| No Par Preferred Stock | No Stated Face Value |
| Cumulative Stock | Preferred Stock for which all passes dividens in arrears, along with current dividends must be paid before becoming common stock holders |
| Non Cumulative Stock | Preferred Sotkc for which passed dividends do not accumulate |
| Conversion Feature | Allows holders to change each share into a stated number of shares of common stock |
| Venture Capital | Privately Raised external equity capital used to fund early stage firms with attarctive growth prospects |
| Venture Capitalists | Providers of venture capital |
| Angel Capitalists | Providers of venture capital usually wealthy people |
| Prospectus | Portion of security registration statement that describes key aspects of the issue, the issuer, and its management and financial position |
| Red Herring | A preliminary prospectus |
| Underwriting | Major role of the investment banker inovles purchasing the security issue from the issuing corporation at an agreed price ` |
| Underwriting Syndicate | Shares the financial risk associated with buying the entire issue from the issuer and reselling the new securties to the public |
| Behavioral Finance | Emerges as against the Efficient Market Hypothesis |
| Zero Growth Model | An Approach to dividend valuation that assumes a constant onon growing dividned stream |
| Constant Growth Model | Often referred to as the Gordon model it assumes that dividends will grow at a constant rate |
| Variable Growth Model | Allows for a change in the dividend growth rate |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.