A balanced mutual fund invests in a mixture of common stock, preferred stock, and bonds to achieve the highest possible return while maintaining a low-risk strategy.
Capital stock represents the equity shares held in a corporation. In the USA, the two fundamental types of capital stock are common stock and preferred stock.
Classified stock refers to a company's common stock that is divided into two or more classes, typically with varying voting rights and privileges. This approach is often used to maintain control within a specific group, such as management or the founders, while raising equity capital from the broader market.
In the USA, the equivalent of the ordinary shares in a public company or privately held firm that give the holders voting and dividend rights. Common stock holders are paid after bondholders and the holders of preferred stock in the event of corporate bankruptcy.
The dollar value at which convertible bonds, debentures, or preferred stock can be converted into common stock; announced when the convertible security is initially issued.
The conversion ratio is a relationship that determines how many shares of common stock will be received in exchange for each convertible bond or preferred share when the conversion takes place.
Cumulative Preferred Stock is a type of preferred stock where omitted dividends must be paid out before any dividends can be paid to common stockholders.
Earnings Per Share (EPS) represents a portion of a company's profit allocated to each outstanding share of its common stock. It is a significant factor in evaluating a company's profitability and its stock outlook.
A security that has a lower priority claim on assets and income than a senior security.
Net Income Per Share, also known as Earnings Per Share (EPS), is the amount of profit or earnings allocated to each share of common stock after all costs, taxes, depreciation, and possible losses have been deducted.
A publicly held corporation is a type of business entity whose shares of common stock are offered to the general public and traded on a national stock exchange.
The right of existing shareholders of a corporation, or their transferees, to buy shares of a new issue of common stock before it is offered to the public.
A contractual right allowing existing shareholders to purchase additional shares of a new issue of common stock before it is offered to the public, aiding in preemptive protection against dilution of ownership.
A Unit Investment Trust (UIT) is an investment vehicle registered with the SEC under the Investment Company Act of 1940. It purchases a fixed portfolio of securities, which may include corporate, municipal, or government bonds, mortgage-backed securities, common stock, or preferred stock.
