Arrearage refers to the amount of overdue payments that are owed and unpaid. This can apply to various financial obligations, including loans, mortgages, bond interests, and dividends on cumulative preferred stock.
Auction Market Preferred Stock (AMPS) refers to a type of preferred stock in which the dividend rate is reset at periodic intervals through a Dutch auction process, allowing for competitive bidding and market-based pricing.
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.
In financial terms, a call premium is either the amount paid by the buyer of a call option above the stock's or index’s current market price, or the additional amount over par that an issuer of bonds or preferred stock pays to redeem the security early.
The call price is the price at which a bond or a preferred stock with a call feature can be redeemed by the issuer prior to its maturity date. It is also known as the redemption price.
The Capital Purchase Program (CPP) was an initiative under the Troubled Asset Relief Program (TARP) to stabilize the financial system by reinforcing the solvency of major banks through purchasing preferred stock and equity warrants.
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.
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.
A cumulative dividend is a feature often associated with preferred stock, entitling holders to receive dividends in arrears before any dividends can be paid to common stockholders.
A type of preference share that entitles the owner to receive any dividends not paid in previous years, guaranteeing eventual payment before ordinary shares are addressed.
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.
The Dividend Requirement refers to the amount of annual earnings that a company needs to allocate in order to pay dividends on its preferred stock.
Fixed-income investments are financial instruments that provide a fixed rate of return in the form of periodic interest or dividends until maturity.
A figure showing earnings per common share after assuming the exercise of all outstanding warrants and stock options, and the conversion of convertible bonds and preferred stock, all potentially dilutive securities.
A security that has a lower priority claim on assets and income than a senior security.
Noncallable refers to a type of preferred stock or bond that cannot be redeemed at the option of the issuer. These financial instruments provide call protection for a certain period, ensuring stability for the investor.
Corporate securities that do not empower a holder to vote on corporate resolutions or the election of directors. Commonly issued during takeovers to dilute equity and discourage mergers.
Participating preferred stock is a type of preferred stock that not only pays a specified dividend but also entitles the holder to participate with common shareholders in additional earnings distributions under certain conditions.
Preference shares, also known as preferred stock, are a class of ownership in a corporation that has a higher claim on assets and earnings than common stock.
Preferred dividends are distributions from corporate earnings and profits paid to owners of preferred stock. These payments take priority over those to be made to common shareholders.
Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shares generally have a dividend that must be paid out before dividends to common shareholders and the shares usually do not carry voting rights.
A type of preferred stock that has a higher claim on assets and dividends compared to other issues of preferred stock or common stock, often referred to as preference shares.
The redemption price is the predetermined value at which a bond or preferred stock can be repurchased or redeemed by the issuer before its maturity date, commonly referred to as the call price.
Seed money is the initial capital used to start a business, often provided by venture capitalists, and can take multiple forms including subordinated loans, convertible bonds, or preferred stock.
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.
