securities

stock certificate

A stock certificate is a printed certificate issued by a corporation to a shareholder, documenting ownership in a stated number of shares of that corporation's stock. It must be noted that generally the courts consider stock certificates...

stock dividend

A Stock dividend refers to corporate dividends compensating shareholders or employees in the form of stocks instead of money. Companies issue stock dividends typically in the form of a certain percentage per share. For example, a company may...

stock option

A stock option is a contract that allows a person to buy a specific number of stock/shares of a company, at a specific price (known as the exercise price or strike price) for a set time period in the future. The price is typically determined...

stock purchase agreement

A stock purchase agreement is a contract under which a seller transfers stock of a corporation to a buyer.

Although the content of a stock purchase agreement may vary in complexity depending on the sophistication of the...

stockholder

A stockholder, also called a shareholder, is a person who owns stock in a corporation.

The stockholder has several rights; including the right to vote for board members, the right of receiving interest and dividends from...

stockholder's derivative action

A stockholder's derivative action, also referred to as a shareholder derivative suit, is a lawsuit brought by a shareholder or group of shareholders on behalf of the corporation against the corporation’s directors, officers, or other third...

syndicate

A syndicate is an association or a joint venture formed to achieve a common business objective. For example, a syndicate may be formed by a group of investment bankers to underwrite and distribute new shares.

[Last updated in March...

takeover

A takeover occurs when the controlling interest in a corporation shifts from one party to another. Takeovers are categorized as either hostile or friendly depending on whether the management of the company being taken over is a willing...

tender offer

Tender offer is a public offer to buy shares of a corporation, usually at above market price and with the intention of gaining controlling interest in the target corporation. An acquirer making a tender offer for more than 5% of a corporation...

testing-the-waters

Testing-the-waters refers to issuers gauging market interest in their public offering by communicating with certain institutional investors prior to filing a registration statement.

Under Sections 5 and 2(a)(3) of the...

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