Related Words

Participating Preferred Stock: Preferred stock that provides the holder with a specified dividend plus the right to additional earnings under specified conditions.

Participating Dividend: Dividend received from ownership of participating preferred stock.

Reverse Stock Split: If a company's stock is trading at a low price, the company may decide to reduce the number of existing shares and increase their price by consolidating the shares. For example, a 1-for-2 re . . . View Full Definition

Return On Stockholders Equity: A measure of overall performance from a stockholder's viewpoint: includes management of operations, uses of assets, and management of debt and equity, and is computed by dividing net income . . . View Full Definition

Screen Stocks: To analyze various stocks in search of stocks that meet predetermined criteria. For example, a simple value screen would sort all stocks by their price-to-book ratio and pick the stocks with . . . View Full Definition

Secondary Stocks: Stocks with smaller market capitalization, less quality and more risk than blue chip issues that behave differently than larger corporations' stocks.

Shadow Stock: First, a public company may create a stock that strips out the market wide movements for the purpose of rewarding managers. That is, the management might have done a great job - but the trad . . . View Full Definition

Restricted Stock: Stock that must be traded in compliance with special SEC regulations concerning its purchase and resale. These restrictions generally result from affiliate ownership, M&A activity, and under . . . View Full Definition

Second-Preferred Stock: Preferred stock issue that has less priority in claiming dividends and assets in liquidation than another issue of preferred stock.

Repurchase Of Stock: Technique to pay cash to firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Treasury stock is the name given to previously issued stock that h . . . View Full Definition