What Are Preference Shares and What Are the Types of Preferred Stock?

Preference shares, also known as preferred stock, are a type of stock that gives shareholders preferential treatment in the event of a liquidation or bankruptcy. Preferred shares typically have a higher dividend rate than common shares, and they also have priority over common shares when it comes to the distribution of assets. There are two … Read more

Global Registered Share (GRS).

GRS refers to a type of stock that is registered with the Securities and Exchange Commission (SEC) in the United States. This type of stock is available for purchase by investors in any country. Is UBS an ADR? UBS is not an American Depositary Receipt (ADR). Does gr stand for gram? No, gr does not … Read more

What Is a Patronage Dividend?

A patronage dividend is a cash dividend paid to shareholders based on their level of business activity with the company. The amount of the dividend is typically proportional to the amount of business done with the company. Patronage dividends are most commonly paid by cooperative businesses, such as credit unions and agricultural cooperatives. They are … Read more

Single Stock Future (SSF).

A single stock future is a contract that allows the holder to buy or sell a specific stock at a set price on a specified date in the future. Single stock futures are traded on exchanges such as the Chicago Mercantile Exchange (CME) and the London International Financial Futures and Options Exchange (LIFFE). To trade … Read more

What Is Contributed Surplus?

Contributed surplus is the portion of a company’s stockholders’ equity that arises from transactions in which the fair value of the consideration received by the company is greater than the par value of the shares issued. For example, if a company issues shares with a par value of $1.00 per share for $5.00 per share, … Read more

What Is Share Turnover?

Share turnover is the number of times a stock is traded in a given period. It is a measure of the liquidity of a stock. A high turnover indicates that a stock is being traded frequently and is therefore easy to buy and sell. A low turnover indicates that a stock is not being traded … Read more

How to Get Access to the Shareholder Register.

According to the U.S. Securities and Exchange Commission, shareholders of a company are entitled to inspect and copy the company’s shareholders register. This register includes the names and addresses of all shareholders, as well as the number of shares each shareholder owns. To get access to the shareholders register, shareholders must submit a written request … Read more

Gray Market.

The gray market is a market for securities that are not yet registered with the Securities and Exchange Commission (SEC). The SEC requires that all securities offerings be registered with the agency, but there is a window of time between when a company files for registration and when the registration becomes effective. During this time, … Read more

Anti-Dilution Provision Definition.

An anti-dilution provision is a clause in a company’s charter or bylaws that protects investors from dilution of their ownership stake in the company. This can happen when the company issues new shares of stock, or when existing shareholders convert their shares into a different class of stock. Anti-dilution provisions give investors the right to … Read more

What Is a Stock Trader?

A stock trader is an individual or firm that trades stocks and other securities on behalf of their clients. Stock traders typically work for brokerages, banks, or investment firms. They buy and sell stocks and other securities according to their clients’ instructions. Stock traders may trade stocks on behalf of their clients or on their … Read more