An offer issued by a corporation to shareholders to purchase more shares of the corporation (usually at a discount). Unlike a renounceable right, a non-renounceable right is not transferable, and therefore cannot be bought or sold. Taobiz explains Non-Renounceable Rights Issuing more shares dilutes the value of outstanding stock. But because the rights issue allows the existing shareholders to buy the newly issued stock at a discount, they are compensated for the impending share dilution - the compensation the rights issue gives them is equivalent to the cost of share dilution. However, shareholders who do not take exercise the rights by buying the discounted stock will lose money as their existing holdings will suffer from the dilution.
A type of employee stock option where you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option. Taobiz explains Non-Qualified Stock Option - NSO NSOs are simpler and more common than incentive stock options (ISOs). They're called non-qualified stock options because they don't meet all of the requirements of the Internal Revenue Code to be qualified as ISOs.
Measures all common stocks listed on the New York Stock Exchange and four subgroup indexes: industrial, transportation, utility and finance. The index tracks the change in the market value of NYSE common stocks, and is adjusted to eliminate the effects of new listings and delistings. The market value of each stock is calculated by multiplying its price per share by the number of shares listed. Taobiz explains NYSE Composite Index The NYSE composite is a fairly good indicator of general market strength.
An American stock exchange owned by NYSE Euronext. The NYSE Amex is located in New York City and handles about 10% of all securities traded in the U.S. It deals in products such as ETFs, cash equities, structured products, and close-end funds and with the acquisition of Amex, NYSE Euronext became the third largest U.S. options marketplace. Taobiz explains NYSE Amex Equities In 2008 the NYSE Euronext acquired the American Stock Exchange (AMEX). The AMEX name was first changed to NYSE Alternext U.S., then became known as NYSE Amex in 2009. It used to be a strong competitor to the New York Stock Exchange, but that role has since been filled by the Nasdaq. Today, almost all trading on the AMEX is in small-cap stocks, exchange-traded funds and derivatives.
An index made up of stocks that represent the NYSE Amex equities market. The NYSE Amex Composite Index is a market capitalization-weighted index, so the weight of each stock depends on the price of the shares and how many are outstanding. Taobiz explains NYSE Amex Composite Index The index is used to quickly judge the overall movement of the NYSE Amex equities market. It was previously known as the American Stock Exchange (Amex) Composite Index and can be found under the symbol XAX. NYSE Euronext acquired the American Stock Exchange on October 1, 2008, and branded it as NYSE Alternext US, which was then changed to the NYSE Amex Equities in 2009. It is primarily an equity market for emerging growth companies.
Additional information provided in a company's financial statements. Notes to the financial statements report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement. This is done mainly for the sake of clarity because these notes can be quite long, and if they were included, they would cloud the data reported in the financial statements. Also known as the "footnotes". Taobiz explains Notes To The Financial Statements It is very important for investors to read the notes to the financial statements included in a company's periodic reports. These notes contain important information on such things as the accounting methodologies used for recording and reporting transactions, pension plan details and stock option compensation information - all of which can have material effects on the bottom-line return that a shareholder can expect from an investment in a company.
The action of a company buying back its own outstanding shares from the markets so it can cancel them. Taobiz explains Normal-Course Issuer Bid-NCIB The amount the company may repurchase is subject to regulatory approval. Instead of holding shares, which fluctuate day to day in the market, a company will cancel the shares to add to its core value.
A share classification structure based on the number of shares outstanding. This determines the number of shares that a market maker can trade at the quoted price. Taobiz explains Normal Market Size Buying or selling in amounts above the set number of shares requires price negotiation with the market maker. The Normal Market Size system reduces the effect a market maker's trading activity may have on the share price of a stock that has shares outstanding in the low thousands.