Employee Stock Option Appreciation Rights Securities (ESOARS): An auction process to assign a value to the options. The high bidder owns the option and receives a payment from the company for the ESOARS when the employee exercises the option.

 

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Employee Stock Option Appreciation Rights Securities (ESOARS): An auction process to assign a value to the options. The high bidder owns the option and receives a payment from the company for the ESOARS when the employee exercises the option.

Preferred Stock Agreement: A contract for preferred stock.

Preferred Stock Ratio: Preferred stock at par value divided by total capitalization, which gives the portion of capitalization that consists of preferred stock.

Preferred Stock: Some corporations issue preferred as well as common stock. Preferred stock can be an attractive investment because it typically pays a fixed dividend on a regular schedule. The share prices . . . View Full Definition

Preferred Equity Redemption Stock (PERC): Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives.

Postponement Option: The option of deferring a project without eliminating the possibility of undertaking it.

Preference Stock: A security that ranks junior to preferred stock but senior to common stock in the right to receive payments from the firm; essentially junior preferred stock.

Premium On Stock: The excess of the issuance (market) price of stock over its par or stated value.

Principal Stockholder: A stockholder who owns 10% or more of the voting stock of a company. Such stockholders must report all trading in the stock to the SEC pursuant insider trading rules.

Property Rights: Rights of individuals and companies to own and use property as they see fit and to receive the stream of income that their property generates.