Common and preferred stocks, which represent a share in the ownership of a company.
Archives
Equity Financing
The dollar value of securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. The value equals the number of securities multiplied by the offering price. The various forms of financial instruments may have an effect on determining the price or the number of securities.
Equity Option
An option contract that grants the holder the right to buy or sell a specific number of shares of stock at a specified price during a specific period of time.
Derivatives
Options and other instrument whose value depends on an underlying security. For instance, the value of a call option on Cisco Systems (derivative) fluctuates with the price of Cisco System’s stock.
Diluted Earnings (a.k.a. fully diluted earnings)
Total of after tax (bottom line) earnings divided by number of common shares including unexercised stock options, and unconverted preferred stock and convertible bonds. Undiluted earnings would be after tax earnings divided by issued stock only, not considering outstanding options, etc.
Direct Stock Purchase Plan (DSP)
A plan implemented by a corporation allowing purchase of shares, or fractions of shares, directly from the company, usually on a regular basis.
Discount
The difference between a bond’s face value and its current market price.
Discount Broker
A stockbroker charging lower commissions than full-service brokers. Discount brokers do not give investment advice.
Dividend
The portion of the issuer’s equity paid directly to shareholders. It is generally paid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date. The exchange that the issue is listed on sets the ex-dividend/distribution (ex-d) date for entitlement. An issuer is under no legal obligation to pay either preferred or common dividends.
Dividend Yield
Total of 12-month’s dividends paid (historical or forecast) divided by the latest share price.