SERIES 7 – EQUITY SECURITIES LATEST
UPDATED
Common Stock: ANSWER can vote.
automatically granted the ability to buy shares.
lowest on the list of liquidation priorities (most junior).
Regular/Status Voting - ANSWER The number of Board posts to be filled (or
issues to be decided) multiplied by one vote for each share owned. Every item
on the ballot must receive an equal number of votes.
Total Voting - ANSWERS The number of Board posts to be filled (or issues to
be decided) multiplied by one vote for each share owned. Each item on the
ballot does not need to receive an equal number of votes.
ANSWER: Authorized Shares number of shares permitted by the corporation's
rules and charter.
Issued Shares: The quantity of shares that have been made available to the
general public.
Outstanding Shares are equal to ANSWER Issued Shares minus Treasury Stock
(shares that the business has repurchased).
Stock Par Value: ANSWER The issuer's bookkeeping value ($1, $5, or
whatever). Typically, the selling price is significantly greater. Market price and
par value are unrelated.
Capital Surplus/Paid in Surplus/Paid in Capital - ANSWER The excess amount
that the issuer gets when they sell the stock.
Answer: No Par Value Stock The stock certificate does not print the par value.
, Answer for Dividing Common Stock If the market price is rising too high, the
market price of each share is lowered by half. Each share's market price
increases when a reverse split occurs. The revised or accurate number of
authorized shares must be reflected in the corporation's charter. When it comes
to splits, common stockholders have voting rights.
ANSWER: Forward Splits Two (A) for one (B), three (A) for one (B), three
(A) for two (B), etc.
Shares x A/B = Shares After Split
Stock Price x B/A = Price After Split
* The total value owned remains unchanged when the number of shares rises
and the market price per share falls.
ANSWER Shares After Split = Shares x A/B for Reverse Splits
Stock Price x B/A = Price After Split
* The total value owned remains unchanged when the number of shares declines
and the market price per share rises.
Cash dividends are determined by the board, are optional, are taxable to
investors, and cause the stock price to drop by the dividend amount on the first
day the stock is traded without the dividend (also known as the ex-dividend
date).
Stock Dividends: ANSWER: The corporation provides a percentage (5%, 10%,
etc.) to the investor, who then obtains more shares.
The investor is not subject to taxes; the total value remains unchanged, as in the
case of issuing a split
Shares x A/B = Shares After Stock Div
Stock Price x B/A = Price After Stock Div
UPDATED
Common Stock: ANSWER can vote.
automatically granted the ability to buy shares.
lowest on the list of liquidation priorities (most junior).
Regular/Status Voting - ANSWER The number of Board posts to be filled (or
issues to be decided) multiplied by one vote for each share owned. Every item
on the ballot must receive an equal number of votes.
Total Voting - ANSWERS The number of Board posts to be filled (or issues to
be decided) multiplied by one vote for each share owned. Each item on the
ballot does not need to receive an equal number of votes.
ANSWER: Authorized Shares number of shares permitted by the corporation's
rules and charter.
Issued Shares: The quantity of shares that have been made available to the
general public.
Outstanding Shares are equal to ANSWER Issued Shares minus Treasury Stock
(shares that the business has repurchased).
Stock Par Value: ANSWER The issuer's bookkeeping value ($1, $5, or
whatever). Typically, the selling price is significantly greater. Market price and
par value are unrelated.
Capital Surplus/Paid in Surplus/Paid in Capital - ANSWER The excess amount
that the issuer gets when they sell the stock.
Answer: No Par Value Stock The stock certificate does not print the par value.
, Answer for Dividing Common Stock If the market price is rising too high, the
market price of each share is lowered by half. Each share's market price
increases when a reverse split occurs. The revised or accurate number of
authorized shares must be reflected in the corporation's charter. When it comes
to splits, common stockholders have voting rights.
ANSWER: Forward Splits Two (A) for one (B), three (A) for one (B), three
(A) for two (B), etc.
Shares x A/B = Shares After Split
Stock Price x B/A = Price After Split
* The total value owned remains unchanged when the number of shares rises
and the market price per share falls.
ANSWER Shares After Split = Shares x A/B for Reverse Splits
Stock Price x B/A = Price After Split
* The total value owned remains unchanged when the number of shares declines
and the market price per share rises.
Cash dividends are determined by the board, are optional, are taxable to
investors, and cause the stock price to drop by the dividend amount on the first
day the stock is traded without the dividend (also known as the ex-dividend
date).
Stock Dividends: ANSWER: The corporation provides a percentage (5%, 10%,
etc.) to the investor, who then obtains more shares.
The investor is not subject to taxes; the total value remains unchanged, as in the
case of issuing a split
Shares x A/B = Shares After Stock Div
Stock Price x B/A = Price After Stock Div
