A close period definition is a restriction placed on certain individuals who are privy to non-public information about a company that is about to release earnings. These individuals are not allowed to trade the stock during the period leading up to the earnings release. The close period definition is meant to protect investors from unfair … Read more
A follow-on offering is a public offering of securities by a company that has already gone public. The securities are typically offered by the company’s underwriters, and the offering is usually made after the company has released positive news, such as a strong earnings report. The purpose of a follow-on offering is to raise additional … Read more
A secondary offering is a public offering of securities by a company that has already gone public. The securities are sold by the company, not by the original shareholders. The company receives the money from the sale, not the shareholders. The purpose of a secondary offering is to raise more money for the company. The … Read more
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
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
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
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
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 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
Underwriting spread is the difference between the price at which an investment bank buys a security from a company and the price at which the investment bank sells the same security to investors. The underwriting spread compensates the investment bank for the risk it assumes when it agrees to buy the security and hold it … Read more
