Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Search Results for: common stock

CLASSIFIED COMMON STOCK

Stock in many categories that is typically divided into two classes based on benefits. ClassA is available to the public; a non-voting, dividend-paying stock . ClassB is voting stock held by the

VOTING STOCK

Common shares give the owner the right to vote at the AGM. Also known as voting shares.

STOCK SPLIT

An attempt by an investor to increase their number of outstanding shares and reduce the par value of their common stock lowering the purchase price to attract investors. Refer to reverse stock

LINE STOCK

Screws, washers, nuts and bolts do not merit piece by piece costing, being of such low value, yet, are identified as common parts or components of a product.

NEW YORK STOCK EXCHANGE (NYSE) COMPOSITE INDEX

Market capitalization value weighted index. Covers common stock price movements as ordinary shares of some 2300 firms listed on NYSE. , All shares relate to an aggregate market capitalization value set December

DIRTY STOCK

Transferred COMMON STOCK that fails to convey good title to the new buyer as a result of errors or omissions in form or authorization.

CONVERTIBLE PREFERRED STOCK

A class of PREFERRED STOCK that allows the investor to convert it into a specified number of shares of COMMON STOCK once a conversion price is reached. Convertible preferreds pay DIVIDENDS rather

CLASSIFIED STOCK

Separate classes of COMMON STOCK issued by a company with each class granting investors a distinct set of RENT RIGHTS and/or CONTROL RIGHTS. Classified stock is often used to increase or decrease

ALPHABET STOCK

Separate classes of COMMON STOCK issued by a company, where each class (often denoted by a letter of the alphabet) represents a different subsidiary. Investors in an alphabet stock receive the RENT

COMMON LAW

As distinguished from the Roman law, the modern civil law, the canon law, and other systems, the common law is that body of law and juristic theory which was originated, developed, and

ZERO COUPON CONVERTIBLE

Zero coupon bond that can be converted to common stock at a set price or if government issued into a bond bearing interest.

SWEAT EQUITY

1. Increased business worth created b y unpaid mental or physical work of the owner or founder. 2. Increased property value created by work of the owner to enhance looks or amenities.

PERMANENT CAPITAL

An ordinary share, or common stock which does not need to be paid back. It is known as permanent financing too.

MODIGLANI-MILLER HYPOTHESIS

Proposition that a firm’s capital cost is independent from the capital type employed in an efficient capital market. Debt, ordinary shares or common stock sold, retained dividend earnings, or any combination of

PAYOUT RATIO

The amount of earnings paid to stockholders over the investments lifetime. This payment takes the form of common stock dividends. Refer to dividend yield and plowback ratio.