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Corporate Actions
A corporate action is an event initiated by a public company that brings or could bring an actual change to the securities—equity or debt—issued by the company. Corporate actions are typically agreed upon by a company's board of directors and authorized by the shareholders. For some events, shareholders or bondholders are permitted to vote on the event. Examples of corporate actions include stock splits, dividends, mergers and acquisitions, rights issues, and spin-offs. Some corporate actions such as a dividend (for equity securities) or coupon payment (for debt securities) may have a direct financial impact on the shareholders or bondholders; another example is a call (early redemption) of a debt security. Other corporate actions such as stock split may have an indirect financial impact, as the increased liquidity of shares may cause the price of the stock to decrease. Some corporate actions, such as name changes or ticker symbol changes to better reflect a company's busi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Company
A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (listed company), which facilitates the trade of shares, or not (unlisted public company). In some jurisdictions, public companies over a certain size must be listed on an exchange. In most cases, public companies are ''private'' enterprises in the ''private'' sector, and "public" emphasizes their reporting and trading on the public markets. Public companies are formed within the legal systems of particular states, and therefore have associations and formal designations which are distinct and separate in the polity in which they reside. In the United States, for example, a public company is usually a type of corporation (though a corporation need not be a public company), in the United Kingdom it is usually a public limited company (plc), i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Return Of Capital
Return of capital (ROC) refers to principal payments back to "capital owners" (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business or investment. It should not be confused with Rate of Return (ROR), which measures a gain or loss on an investment. It is essentially a return of some or all of the initial investment, which reduces the basis on that investment. ROC effectively shrinks the firm's equity in the same way that all distributions do. It is a transfer of value from the company to the owner. In an efficient market, the stock's price will fall by an amount equal to the distribution. Most public companies pay out only a percentage of their income as dividends. In some industries it is common to pay ROC. *Real Estate Investment Trusts (REITs) commonly make distributions equal to the sum of their income and the depreciation (capital cost allowance) allowed for in the calculation of that income. The business has the cash to make ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Over-the-counter (finance)
Over-the-counter (OTC) or off-exchange trading or pink sheet trading is done directly between two parties, without the supervision of an exchange (organized market), exchange. It is contrasted with exchange trading, which occurs via exchanges. A stock exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price. In an OTC trade, the price is not necessarily publicly disclosed. OTC trading, as well as exchange trading, occurs with commodities, financial instruments (including stocks), and derivative (finance), derivatives of such products. Products traded traditional stock exchanges, and other regulated bourse platforms, must be well standardized. This means that exchanged deliverables match a narrow range of quantity, quality, and identity which is defined by the exchange and identical to all transactions of that product. This is necessary for there to be transparency in stock exchange-based equities trading. The OTC ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Public Companies
A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (listed company), which facilitates the trade of shares, or not (unlisted public company). In some jurisdictions, public companies over a certain size must be listed on an exchange. In most cases, public companies are ''private'' enterprises in the ''private'' sector, and "public" emphasizes their reporting and trading on the public markets. Public companies are formed within the legal systems of particular states, and therefore have associations and formal designations which are distinct and separate in the polity in which they reside. In the United States, for example, a public company is usually a type of corporation (though a corporation need not be a public company), in the United Kingdom it is usually a public limited company (plc), in Fr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Subscription (finance)
Subscription refers to the process of investors signing up and committing to invest in a financial instrument, before the actual closing of the purchase. The term comes from the Latin word ''subscribere''. Historical Praenumeration An early form of subscription was praenumeration, a common business practice in the 18th-century book trade in Germany. The publisher offered to sell a book that was planned but had not yet been printed, usually at a discount, so as to cover their costs in advance. The business practice was particularly common with magazines, helping to determine in advance how many subscribers there would be. Praenumeration is similar to the recent crowdfunding financing model. New issues Subscription agreement Subscription to new issues can be covered by a subscription agreement, legally committing the investor to invest in the financial instrument, and committing the company to certain obligations and warranties. In some jurisdictions, it is possible for the issuer ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Position (finance)
In finance, a position is the amount of a particular security, commodity or currency held or owned by a person or entity. In financial trading, a position in a futures contract does not reflect ownership but rather a binding commitment to buy or sell a given number of financial instruments, such as securities, currencies or commodities, for a given price. Trading and financial assets In derivatives trading or for financial instruments, the concept of a ''position'' is used extensively. There are two basic types of position: a ''long'' (holding a positive amount of the instrument) and a ''short'' (holding a negative amount of the instrument). Generally speaking, long positions stand to gain from a rise of the price of the instrument and short positions from a fall (but with options the situation is more complicated). Options will be used in the following explanations. The same principle applies for futures and other securities. For simplicity, only one contract is being tr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Beneficial Impact Of Corporate Actions
Beneficial may refer to: Organizations * Beneficial Corporation, a consumer finance company founded in 1914 that was ultimately bought by HSBC Corporation ** Beneficial Loan Society, the former name of Beneficial Corporation ** Beneficial Finance, a former division of HSBC Finance, and a part of their acquisition of Beneficial Corporation * Beneficial Bank, a full-service bank founded in 1853 operating in Pennsylvania and New Jersey * Beneficial Financial Group, an insurance and financial services company founded in 1905 and run by The Church of Jesus Christ of Latter-day Saints * Beneficial State Bank, a community development bank founded in 2007 that serves California and the Pacific Northwest Biology * Beneficial organism, any organism that benefits the growing process of another species ** Beneficial insect ** Beneficial weed * ''Beneficial Microbes'', a scientific journal covering research on microbes beneficial to the health and well-being of humans and animals Law * Benefici ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mergers
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position. Technically, a is a legal consolidation of two business entities into one, whereas an occurs when one entity takes ownership of another entity's share capital, equity interests or assets. A deal may be euphemistically called a ''merger of equals'' if both CEOs agree that joining together is in the best interest of both of their companies. From a legal and financial point of view, both mergers and acquisitions generally result in the consolidation of assets and liabilities under one entity, and the distinction between the two is not always clear. In most countries, mergers and acquisitions must comp ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Treasury Stock
A treasury stock or reacquired stock is stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ("open market" including insiders' holdings). Stock repurchases are used as a tax efficient method to put cash into shareholders' hands, rather than paying dividends, in jurisdictions that treat capital gains more favorably. Sometimes, companies repurchase their stock when they feel that it is undervalued on the open market. Other times, companies repurchase their stock to reduce dilution from incentive compensation plans for employees. Another reason for stock repurchase is to protect the company against a takeover threat.Robert T. Sprouse, "Accounting for treasury stock transactions: Prevailing practices and new statutory provisions." ''Columbia Law Review'' 59.6 (1959): 882-900online/ref> The United Kingdom equivalent of treasury stock as used in the United States is treasury share. Treasury stocks in the UK refers to governm ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reverse Stock Split
In finance, a reverse stock split or reverse split is a process by which shares of corporate stock are effectively merged to form a smaller number of proportionally more valuable shares. A reverse stock split is also called a stock merge. The "reverse stock split" appellation is a reference to the more common stock split in which shares are effectively divided to form a larger number of proportionally less valuable shares. New shares are typically issued in a simple ratio, e.g. 1 new share for 2 old shares, 3 for 4, etc. A reverse split is the opposite of a stock split. Typically, the exchange temporarily adds a "D" to the end of a ticker symbol during a reverse stock split. Sometimes a company may concurrently change its name. This is known as a name change and consolidation (i.e. using a different ticker symbol for the new shares). There is a stigma attached to doing a reverse stock split, as it underscores the fact that shares have declined in value, so it is not common an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Listing (finance)
In corporate finance, a listing refers to the company's shares being on the list (or board) of stock that are officially traded on a stock exchange. Some stock exchanges allow shares of a foreign company to be listed and may allow dual listing, subject to conditions. Normally the issuing company is the one that applies for a listing but in some countries an exchange can list a company, for instance because its stock is already being traded via informal channels. Stocks whose market value and/or turnover fall below critical levels may be delisted by the exchange. Delisting often arises from a merger or takeover, or the company going private. Requirements Each stock exchange has its own listing requirements or rules. Initial listing requirements usually include supplying a history of a few years of financial statements (not required for "alternative" markets targeting young firms); a sufficient size of the amount being placed among the general public (the free float), both in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Purpose Of Corporate Actions
Purpose is the end for which something is done, created or for which it exists. It is part of the topic of intentionality and goal-seeking behavior. Related concepts and subjects: * Goal, a desired result or possible outcome * Intention, the state of intending something or the action intended * Motivation, a driving factor for actions, willingness, and goals * Determination or resolve * Purpose clause, in grammar a dependent adverbial clause expressing purpose * Purpose of life, questions regarding the significance of living or existence in general * Teleology, the philosophical attempt to describe things in terms of their apparent purpose or goal * Teleonomy, the apparent purposefulness of structures and functions in living organisms Music * ''Purpose'' (Algebra album), 2008 * ''Purpose'' (Justin Bieber album), or the title song, 2015 * ''Purpose'' (Taeyeon album), 2019 Film * ''Purpose'' (film), a 2001 American independent drama thriller film People * Darryl Purpose, Americ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
