Participating preferred stock is a type of preferred stock that gives the holder a right to be paid first, before common stockholders (non-preferred) in the event of a dividend or liquidation payout. Additionally, the holder has the right to...
securities
periodic reports
Periodic reports are documents that public companies must continuously file with the Securities and Exchange Commission (SEC) which disclose material updates on the company’s business operations. There are three ways a company can have a...
poison pill
A poison pill is a corporation’s defensive strategy used against a hostile takeover. When a hostile takeover tries to merge a target company by buying its stocks publicly or privately, the target company could issue preferred stocks that will...
Ponzi scheme
Ponzi schemes are a type of investment fraud in which investors are promised artificially high rates of return with little or no risk. Original investors and the perpetrators of the fraud are paid off by funds from later investors, but there...
position limits
Position limits are restrictions set by the Commodity Futures Trading Commission (CFTC) that limit the trading and position-holding on certain commodities. The CFTC specifies, for example, the maximum position that one person or entity can...
post-effective period
Post-effective period is the stage in the initial public offering (IPO) process after the Securities and Exchange Commission (SEC) declares the issuer’s registration statement effective. Section 5 of the Securities Act and SEC regulations...
pre-filing period
The pre-filing period is the stage in the initial public offering (IPO) process prior to when the issuer files their registration statement. Also referred to as the quiet period. Section 5 of the Securities Act and Securities and Exchange...
preemptive right
A preemptive right is a right of existing shareholders in a corporation to purchase newly issued stock before it is offered to others. The right is meant to protect current shareholders from dilution in value or control. Preemptive rights, if...
preferred dividend
Preferred dividend is the dividend payment made to the holders of preferred stock. As a rule, preferred dividends are paid out to shareholders before common stock dividends are issued. Further, in insolvency proceedings, the claims with...
preferred stock
Preferred stock are shares issued from a company that have priority in receiving dividends and other benefits over common stock. The exact benefits offered by a preferred stock may vary, but all have some form of priority over common...