A stock buyback, also known as a share repurchase, is a process where a company purchases its own shares from the marketplace, reducing the number of outstanding shares.
Stock dividends refer to the payment of a corporate dividend in the form of additional shares rather than cash. This form of dividend distribution allows shareholders to increase their holdings in the company without any immediate tax implications or outflows for the corporation.
A stock repurchase plan, also known as a share buyback, is a program by which a corporation buys back its own shares from the open market. Typically deployed when shares are perceived as undervalued, this practice reduces the number of shares outstanding, thus raising earnings per share (EPS) and potentially increasing the market value of the remaining shares.
Stock rights, also known as subscription rights or warrants, are financial instruments that give existing shareholders the right, but not the obligation, to purchase additional shares of a company at a predetermined price before a specified expiration date.
A stock split increases the number of a corporation's outstanding shares while making the stock more marketable, without altering shareholders' equity or the overall market value at the time of the split.
Stock transfer refers to the process of transferring the ownership of stock or shares from one person to another. It's a critical mechanism in corporate finance that enables the buying and selling of company shares in the stock market.
Stock-for-asset reorganization is a form of corporate restructuring where an acquiring corporation exchanges its voting stock (or its parent's voting stock) for substantially all of the assets of another corporation.
A form of reorganization where one corporation acquires at least 80% of another corporation's stock in exchange solely for all or part of its own (or its parent's) voting stock, transforming the acquired corporation into a subsidiary.
A common or preferred stockholder whose name is registered on the books of a corporation as owning shares as of a particular date. Dividends and other distributions are made only to shareholders of record.
Stockholders' equity represents the ownership interest of shareholders in a corporation, calculated as the difference between total assets and total liabilities.
The subscription price refers to the fixed price at which existing shareholders of a corporation are entitled to purchase additional common shares in a rights offering or exercise their subscription warrants.
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 bond issued by a Japanese-registered company in a currency other than yen but targeted primarily at the Japanese institutional investor market.
Taffler's Z Score is a financial metric used to predict the likelihood of a company going bankrupt within a year, specifically tailored to UK-based companies. It is often compared to other financial distress prediction models, such as the Altman Z Score.
The process of distributing a tax charge among different sources of income to ensure appropriate tax liability allocation.
A tender offer is a public proposal made to shareholders of a particular corporation to purchase a specified number of shares at a predetermined price. The offer generally contains specific conditions, such as the requirement that the offeror must obtain the total number of shares specified in the tender to proceed.
A tender panel involves a group of banks that come together to competitively offer loan terms to a company, ensuring the borrower gets the best conditions for financing.
A thin corporation primarily uses loans from shareholders for its capital rather than equity investments to enjoy tax advantages. This can lead to tax challenges if debt-to-stock ratios surpass acceptable industry standards.
Total capitalization refers to the comprehensive capital structure of a company, including long-term debt and all forms of equity. It reflects the total amount of capital a company has raised through debt and equity instruments to fund its operations and growth.
Transfer price refers to the price charged by individual entities of a multi-entity corporation on transactions among themselves. It is also termed transfer cost and is predominantly used where each entity is managed as a profit center and must deal with other internal parts of the corporation on an arm's length basis.
Treasury stock refers to shares of a company's own stock that have been reacquired by the company itself, subsequently reducing the number of shares available in the open market.
Unissued share capital refers to the portion of a company's authorized share capital that has not yet been issued to shareholders. It is the difference between the authorized share capital and the issued share capital.
An unlimited company is a type of company where its members have unlimited liability. This means that in case of liquidation, members are required to cover all the company's debts using their personal assets, if necessary.
An unsecured debenture is a type of debt instrument that is not backed by any specific collateral, relying instead on the creditworthiness and reputation of the issuer.
Unsecured Loan Stock (ULS) is a type of loan stock that is not backed by any assets or collateral, making it riskier for lenders compared to secured loan stocks.
Unsecured Loan Stock (ULS) refers to a type of loan stock or debenture that is not backed by specific assets, making it a type of unsecured debt.
A value-added statement outlines the wealth that a company has created for its stakeholders and how that wealth is distributed among employees, shareholders, governments, and others.
The weighted average cost of capital (WACC) represents a firm's average cost of capital from all sources, including both equity and debt, weighted by their respective usage in the firm's capital structure.
A financial metric used to gauge the average cost of capital by weighting each capital component proportionally.
In corporate finance, a white knight refers to a person or firm that makes a welcomed takeover bid for a company on improved terms, aiming to replace an unacceptable and unwelcome bid from another party, known as a black knight. This tactic helps the target company to find a more suitable and favorable owner.
A year-end dividend is a distribution of profits made by a corporation to its shareholders, declared at or near the end of the business year and typically paid from retained earnings.
Zero-Base Budgeting (ZBB) is a budgeting method where all expenses must be justified for each new period, starting from a 'zero base.' Unlike traditional budgeting, no expenses are automatically carried forward from the previous period.
