Financial key terms
and definitions
Defined Financial information
and glossary
Please see specific financial
information below
Finance and Trading:
Odd-Lot
Any number of shares less than 100.
Odd-Lot Buy Back
An opportunity offered by a company or its agent to purchase
shares from odd-lot shareholders.
Odd-Lot Resale
An opportunity offered by a company or its agent to purchase
shares from odd-lot shareholders and then immediately
reselling the shares on the open market.
Par Value
The nominal dollar amount assigned to a security by the
issuing corporation. Par value bears no relationship to the
market value of the security.
Payable Date
The date a dividend payment will be made to the shareholders
of record. The payable date is established by the company on
declaration date.
Paying Agent
An agent that makes dividend payments to shareholders on
behalf of the issuer. Also called a Disbursing Agent.
Personal Representative
A court-appointed individual charged with the management or
distribution of the estate of a decedent.
Power-of-Attorney
A legal document that enables an individual to designate
another person, called the Attorney-in- Fact, to act on
behalf of the shareholder.
Preferred Stock
Like common stock, preferred stock represents ownership in a
company, although preferred stock shareholders do not
realize any of the voting rights of common stockholders.
Preferred stock provides a specific dividend that is paid
before any dividends are paid to common stock holders. Also,
preferred stock holders receive preference over common stock
holders if the company is liquidated. The main benefit to
owning preferred stock is that the investor has a greater
claim on the company’s assets than common stock holders.
Preferred Stock, Callable
Type of Preferred stock that can be purchased by the issuer
at a specified price.
Preferred Stock,
Convertible
Type of Preferred Stock that can be exchanged for common
stock at a specified price or ratio.
Preferred Stock, Cumulative
Type of Preferred stock on which dividends accrue in the
event that the issuer does not make timely dividend
payments. Most preferred stock is cumulative preferred.
Preferred Stock, Protective
Type of Preferred stock on which dividends are guaranteed,
even if the company isn’t earning a profit.
Premium
The amount by which the market value of a stock exceeds its
face value or par.
Privately Held Company
A company whose stock is not traded on the open market. A
privately held company is the opposite of a publicly held
company.
Probate
The review of a will before a court of law to determine
whether or not the will is valid. Also, the process by which
an executor (if a will exists) or a court-appointed
administrator (if no will exists) manages and distributes a
decedent’s property.
Pro-Ration
A method used for the proportionate allocation of stock.
With regard to corporate actions, a company limits the total
number of shares of stock that can be issued (in an
exchange) or accepted (in a tender offer). If the total
elections submitted by shareholders exceed this limit, the
elections will be pro-rated.
Prospectus
A formal document offering securities for sale. The document
must explain the offer, including the terms, issuer, planned
use of the money, historical financial statements and other
information that could help an individual decide whether or
not an investment is attractive.
Proxy Card
A proxy card is the vehicle used by shareholders to vote on
various proposals.
Proxy
Authorization, whether written or electronic, given by a
shareholder so that votes may be cast by others.
Proxy Committee
A group of individuals appointed by a company’s Board of
Directors to officially represent shares voted accordingly
by proxy.
Proxy Contest
A proxy contest occurs when an acquiring company attempts to
persuade shareholders to vote their shares so that new
management is elected or a takeover proposal is passed.
Proxy Solicitor
A company hired by an issuer to contact shareholders in
order to increase proxy voting.
Proxy Statement
A document required by the SEC that a company sends to its
shareholders that provides material facts concerning matters
on which the shareholders will vote on at the annual or
special meeting of shareholders.
Publicly Held
Refers to a company that has issued securities through an
offering and are now traded on the open market for a
specified period of time.
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Financial key
terms and definitions. All information about financial
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