Record Date

This is the date that a stock must be in your account for you to receive a dividend. The record date has nothing to do with how we trade stock splits.

Shareholders Equity

The difference between the total of assets and liabilities shown on a company’s balance sheet. Book value is the shareholders equity divided by the number of outstanding shares.

Pay Date

With respect to stocks split or dividends, a pay date is the date that a company pays a dividend or stock split out, which is usually the day before the ex-dividend date.

Redeemable Security

A security that carries a condition giving the issuer a right to call in and retire that security at a certain price and for a certain period of time.

Preferred Shares

These are a type of stock issued by a company. Preferred shares give such shareholders a fixed dividend from the company’s earnings. Preferred shareholders also get paid before common shareholders.

Reverse Stock Split

This is where a company reduces the number of outstanding shares by decreasing the number of available shares and combining their value into the fewer shares. This has the effect of increasing the stock’s par value. This is often used by companies whose stock is about to be delisted from an exchange because of its low price.