SIE equities

What is common stock?

Common Stock: The basic unit of corporate ownership; carries the most risk but also the highest potential for long-term growth.

What are authorized shares?

Authorized Shares: The total number of shares a company is legally allowed to issue per its corporate charter.

What are issued shares?

Issued Shares: The portion of authorized shares that have actually been sold to the public.

What is treasury stock?

Treasury Stock: Shares that were issued and then bought back by the company; they do not vote and do not receive dividends.

What are outstanding shares?

Outstanding Shares: Issued shares minus treasury shares; these are the shares that vote and receive dividends.

What is statutory voting?

Statutory Voting: Allows a shareholder to cast one vote per share for each director position being filled.

What is cumulative voting?

Cumulative Voting: Allows shareholders to pool their total votes and cast them in any way they choose to benefit smaller shareholders.

What are preemptive rights?

Preemptive Rights: The right of existing shareholders to maintain their percentage of ownership before new shares are sold to the public.

What are warrants?

Warrants: Long-term rights to buy stock at a fixed price that is usually higher than the current market price when issued.

What is a cash dividend?

Cash Dividend: A taxable payment made to shareholders, usually on a quarterly basis.

What is a stock dividend?

Stock Dividend: A payment made in the form of additional shares rather than cash; not taxable until the shares are sold.

What is preferred stock?

Preferred Stock: An equity security with a fixed dividend that must be paid before common stockholders receive anything.

What is cumulative preferred stock?

Cumulative Preferred: If a dividend is missed, it must be paid in full to these holders before any common dividends are paid.

What is convertible preferred stock?

Convertible Preferred: Allows the holder to swap their preferred shares for a predetermined number of common shares.

What is callable preferred stock?

Callable Preferred: Allows the company to buy back the shares from the investor at a set price after a certain date.

What is an ADR (American Depositary Receipt)?

ADR (American Depositary Receipt): A receipt issued by a US bank representing shares of a foreign stock; trades in US dollars.

What are capital gains?

Capital Gains: Profit realized when an asset is sold for more than its purchase price (cost basis).

What are capital losses?

Capital Loss: The loss realized when an asset is sold for less than its purchase price.

What is a penny stock?

Penny Stock: An unlisted equity security trading at less than $5 per share.