Unit 3: Topic 1 ( Trading, Settlement, Corporate Actions)

Stock Splits

If the stock price gets too high or too low. Issuer can do a Forward or Reverse _____________.

Stock Rights

-Additional shares authorized in primary market, allows shareholders to maintain proportionate ownership
- Opportunity to purchase at discount, 30 days before public offering
- Can be sold in Secondary Market (Short Term)
Allows to purchase Below Market V

Stock Warrants

- In Stocks typically (Pref. Stock), an option that allows holder to purchase more stock at a predetermined price in the future.
-"Exercise Price" will be higher than current price, but hopefully lower than some price in the future.
- (Long Term) bundled

Mergers & Acquisitions (M&A)

Ownership of companies or their operating units are transferred

Takeover

The purchase of one company by another company

Spin- Off

Parent company sells all shares of a subsidiary (divest)

Tender Off

An offer to buy securities for cash or for cash plus securities.

Buyback (Repurchase)

When a company buys its own outstanding shares in the open market from existing shareholders.

Declaration Date

Date dividend declared by BOD

Ex-Dividend Date

First day that New Shareholders will purchase the security "WITHOUT" the dividend.

Record Date

Owner of Stock on Record Date entitled to Dividend

Payable Date

Date the Dividend is Paid