Class A Shares.

A class A share is a type of stock that typically entitles the holder to more voting rights than other classes of stock. Class A shares may also come with other privileges, such as priority when it comes to dividends or the right to buy additional shares. Class A shares are often issued by companies … Read more

Accelerated Share Repurchase (ASR) Definition.

An accelerated share repurchase (ASR) is a type of share repurchase in which a company buys back shares from investors at a faster rate than usual. ASRs are often used by companies that want to quickly reduce the number of shares outstanding. ASRs are typically conducted over a period of days or weeks, during which … Read more

What Is a Subscription Right?

A subscription right is a right that is given to shareholders of a company to subscribe to new shares of the company, usually at a discount to the market price. This right is typically given to shareholders when the company is raising new capital. Can rights issue be sold? Yes, rights issue can be sold, … Read more

Price Band.

A price band is a range within which the price of a security is allowed to fluctuate during the course of trading. Price bands are typically set by exchanges or regulatory organizations and may be adjusted from time to time. For example, a price band may be set at $0.50 to $1.00 for a particular … Read more

Deferred Share.

A deferred share is a type of stock that does not entitle the holder to any voting rights or dividends until a specified date. After that date, the holder may be entitled to receive dividends and voting rights, but the terms of the stock may still limit or prohibit these rights. Is share and stock … Read more

Escrowed Shares Definition.

Escrowed shares are shares of a company’s stock that have been placed in an escrow account. The shares are typically held in the account for a set period of time, after which they can be released to the shareholder. During the holding period, the shareholder may not be able to sell or transfer the shares. … Read more

The Clientele Effect Happens After Changes to Taxes, Policy, or Dividends.

. The Clientele Effect is seen after changes to taxes, policy, or dividends. What is the signaling effect of dividend payments? Dividend payments have a signaling effect in that they communicate to the market that a company’s management team is confident in the company’s long-term prospects. By paying a dividend, a company is essentially saying … Read more

Noncumulative Definition and Examples.

The term “noncumulative” refers to a type of preference stock in which the holder is not entitled to any missed dividends. Noncumulative preference shares are typically issued by companies that have a history of dividend payments, but may occasionally skip a dividend payment. For example, if a company pays dividends quarterly and misses a payment … Read more

When Issued (WI).

The term “When Issued (WI)” refers to the period of time between the announcement of a security and its actual issuance. During this time, the security is said to be “when issued.” This period can last for a few days or even weeks. WI is commonly used for new issues of stock, bonds, and other … Read more

No Quote Definition and Examples.

When a broker or market maker does not have a quote for a particular security, it is said to be “no bid” or “no offer”. This usually happens when there is very little trading activity in the security. No bid/no offer situations can also occur when a security is temporarily suspended from trading. What is … Read more