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.
A security issued by a corporation that has a $25 par value (although some are issued with a $1,000 par value) and offers investors a combination of the features of corporate bonds and preferred stock. These securities provide the benefits of attractive yields, fixed monthly, quarterly or semiannual income, investment time frames that are generally predictable (20-49 years, although some are perpetual), liquidity and investment-grade credit quality (in most cases). |||Unlike common and preferred stock dividends, the distributions made on fixed-rate capital securities are fully tax-deductible for the issuer, just like the interest payments on traditional debt instruments. Rating agencies have taken a positive view of this financing tool for the issuer, because it provides long-term capital and permits the deferral of payments should the issuer experience financial difficulties. However, as with preferred stock, such deferrals can only occur if the parent company stops all other stock dividend payments.
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.
A postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments. |||Basically, forbearance allows the borrower to put a temporary hold on his or her monthly payments, usually for up to one year. Forbearance is common for unemployed people with outstanding student loans.
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.
Fixed income products that were originally purchased by investors at a discount for the purpose of paying federal estate taxes upon their maturity. |||Investors would purchase these bonds before their death in anticipation of federal estate taxes. If the bondholder passed away, the bonds would mature at par value and be used as payment for the deceased's federal estate taxes. Also known as estate tax anticipation bonds, the last of these bonds matured in 1998.