A type of preferred stock that has no maturity date. The issuers of perpetual preferred stock will always have redemption privileges on such shares. Issued perpetual preferred stock will continue paying dividends indefinitely. Watch: What Are Stocks? Taobiz explains Perpetual Preferred Stock Perpetual preferred stock also has a cumulative version that accumulates dividends from one period to the next. Both types of stock are designed for relatively conservative long-term investors.
A stock index that includes all dividends and other cash events paid out to shareholders. When measuring the performance over a given time period, the performance-based index will add in any dividend amounts to the net share price before calculating the index return. Taobiz explains Performance-based Index The DAX, a benchmark stock index of 30 blue chip German companies, is a performance-based index, as are many of those based on European equities. The performance of the benchmark Standard & Poor’s 500 Index is usually presented with company dividends included, but can be shown with and without. When examining the total return of index funds, investors may see that not only are dividends included, but also capital gains, a factor not present in the non-traded indexes themselves.
The negative effect of transaction costs on the performance of an investment. Performance drag is most commonly attributed to brokerage commissions, but there are many other factors such as timing, bid-ask spreads and other opportunity costs that can cause the return of an investment to lag behind the return seen in the market. Taobiz explains Performance Drag For many traders, the actual return of an asset is sharply different than what would be recognized if all transaction costs were removed. For example, let's assume an investor pays $30 in brokerage commissions (per order) to hold 100 shares of ABC Company at an entry price of $24 per share. In this case, the investor needs the stock's price to rise 2.5% so that he or she can recover the commissions paid to be in the trade (a $0.60 rise on 100 shares will equal the $60 that the investor needs to recoup the commissions. Given the $24 stock price, this is equal to 2.5%) The 2.5% cost of the transaction will cause the investor's position to drag behind the change in the price of the asset.
A position undertaken by an investor that would eliminate the risk of an existing position, or a position that eliminates all market risk from a portfolio. In order to be a perfect hedge, a position would need to have a 100% inverse correlation to the initial position. As such, the perfect hedge is rarely found. Taobiz explains Perfect Hedge A common example of a near-perfect hedge would be an investor using a combination of held stock and opposing options positions to self-insure against any loss in the stock position. The cost of this strategy is that it also limits the upside potential of the stock position.
A measure used in the financial world to illustrate the quantity of something for one share of a company's stock. Such measures are used in the analysis and valuation of a company. Examples include 'earnings per share', 'cash per share', 'revenue per share' and 'debt per share'. Taobiz explains Per Share Basis To measure something on a per share basis, take the total quantity of whatever you are measuring and divide it by the number of outstanding shares in the company. For example if the earnings of a company is $2 million and there are 4 million shares, the earnings on a per share basis is $0.50 per share.
A stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. They will often trade over the counter through the OTCBB and pink sheets. Watch: What Are Stocks? Taobiz explains Penny Stock The term itself is a misnomer because there is no generally accepted definition of a penny stock. Some consider it to be any stock that trades for pennies or those that trade for under $5, while others consider any stock trading off of the major market exchanges as a penny stock. However, confusion can occur as there are some very large companies, based on market capitalization, that trade below $5 per share, while there are many very small companies that trade for $5 or more. The typical penny stock is a very small company with highly illiquid and speculative shares. The company will also generally be subject to limited listing requirements along with fewer filing and regulatory standards.
A bid, or offer to purchase securities, provided by a lead underwriter or other member of a syndicate as part of early IPO trading. The bid comes with the restrictions; if it is used, a penalty will be assessed to the broker offering the shares back to the underwriter. The penalty bid is created to deter investors from "flipping" IPO shares shortly after trading begins. Taobiz explains Penalty Bid This penalty may be passed on from the broker to the client selling the IPO shares, but typically involves the broker returning some or all of the internal commission income back to the underwriting syndicate. At the very least, a broker whose client insists on selling shares back and incurring the penalty bid will not be pleased with the client, and will be unlikely to refer IPO shares back to that client in the future.
Additional warrants that are acquired following the exercise of primary warrants. Taobiz explains Piggyback Warrants Piggyback warrants are a type of sweetener and can prompt additional investment in a company.
登录
工商服务
危机公关
金融律师
app开发
财税服务
金融牌照
网站建设
知识产权
企业征信
审计评估