Financial key terms
and definitions
Defined Financial information
and glossary
Please see specific financial
information below
Finance and Trading:
Eligible Guarantor
Institution
Any entity (i.e. bank, broker, financial institution, etc.)
that is a participant in a Securities Transfer Association
recognized signature guarantee program. The Securities
Transfer Association has recognized three signature
guarantee programs: the Securities Transfer Association
Medallion Program (STAMP), Stock Exchanges Medallion Program
(SEMP) and the Medallion Signature Program (MSP). A
signature guarantee must be performed by a member of an
eligible institution in an eligible program for it to be
acceptable to National City.
Employee Stock Purchase
Plan
A program implemented by a company that provides employees
the opportunity to purchase shares of company stock through
scheduled payroll deduction.
Endorsement
A signature used to legally transfer all rights title and
interest in a negotiable instrument, such as a stock
certificate.
Endorsement by Mark
The endorsement of a security by an owner who is unable to
write his or her own name. The holder may endorse the
security with a mark (x), attach an acceptable signature
guarantee, and the endorsement must be accompanied by the
signatures and addresses of two witnesses, neither of whom
are transferees of the shares.
Equity
The shareholder’s ownership interest in a company in the
form of common or preferred stock.
Escheatment
The process of remitting unclaimed or abandoned property to
a state authority. Property such as securities or unclaimed
funds is remitted to the state where the shareholder was
last known to reside when no claim by the shareholder had
been made within a certain period of time. The time period
is determined by individual state laws and is usually
between 3 and 7 years. A shareholder or representative of
the shareholder can claim escheated property from the state.
Estate
All assets owned by a person at their time of death.
Estate Representative
Also referred to as an executor or administrator, an estate
representative oversees the legal affairs of a decedent’s
estate.
Ex-Dividend
A security that no longer includes the right to receive the
most recently declared dividend; or the period of time
between the announcement of the dividend and the payment. A
security becomes ex-dividend on the ex-dividend date, which
is usually two business days prior to the record date. For
transactions that occur during the ex-dividend period, the
seller will receive the dividend.
Ex-Dividend Date
The first day of the ex-dividend period. An investor who
purchases stock on or after the ex-dividend will not be
entitled to receive the dividend.
Exchange
Issuing one security for another or the exchange of
securities is required in a merger transaction or due to the
reclassification of stock by a company.
Exchange Agent
The institution appointed to handle an exchange. Often an
exchange agent simultaneously serves as paying agent,
depository and transfer agent for the surviving company.
Executor
An individual or institution named in a will and appointed
by a court to settle the estate of a deceased person.
Fair Market Value
The price that an interested and willing buyer would pay and
an interested and willing seller would accept on the open
market.
Fiduciary
An individual or entity that holds assets for another party,
often with the legal authority and duty to make decisions
regarding financial matters on behalf of the other party.
Forms of Ownership
Registration
The name of the shareholder as it appears on the stock
certificate and on the company’s or transfer agent’s
records.
Fractional Shares
Less than a single share of stock. Fractional shares often
result from stock splits, stock exchanges or similar actions
or from dividend reinvestment purchases. The fractional
share is paid out in cash or accumulated in a dividend
reinvestment account with every purchase.
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Financial key
terms and definitions. All information about financial
and trade terms.
