Mid-cap stocks are those that have a market capitalization between $2 billion and $10 billion. They are considered to be more risky than large-cap stocks, but less risky than small-cap stocks. Mid-cap stocks tend to be more volatile than large-cap stocks, but they also offer the potential for higher returns. They are often considered to … Read more
The adjusted closing price is the closing price of a stock after adjusting for corporate actions. Corporate actions can include stock splits, dividends, and rights offerings. The adjusted closing price is used when calculating various measures such as return on investment (ROI) and earnings per share (EPS). How are adjusted purchases calculated? The adjusted purchase … Read more
The broad-based weighted average is a measure of the average price of a security or group of securities. The weighting is based on the market capitalization of the underlying companies. This average is often used as a benchmark for investment performance. What does a 2x liquidation preference mean? A 2x liquidation preference means that the … Read more
A stock certificate is an official document that proves ownership of shares in a company. The certificate is issued by the company itself and lists the shareholder’s name, the number of shares owned, and the date of purchase. While physical stock certificates are no longer as common as they once were, many investors still prefer … Read more
Insider information is any non-public information about a company that could potentially influence its stock price. This might include financial data, news about upcoming product launches, or details about mergers and acquisitions. Insiders are people who have access to this kind of information because of their position within a company. They might be senior executives, … Read more
. What Everyone Should Know about Depositary Receipts What are the two main types of ADR? There are two main types of ADR: sponsored and unsponsored. Sponsored ADRs are issued by a U.S. bank or broker-dealer and are registered with the SEC. Unsponsored ADRs are not registered with the SEC and are not issued by … Read more
A back stop is a type of order that is placed with a broker that guarantees a minimum price for a security. This is done in order to protect the investor from a sudden drop in the price of the security. What happens when a SPAC goes below $10? When a Special Purpose Acquisition Company … Read more
A blank check preferred stock is a type of preferred stock that gives the issuing company the flexibility to determine the dividend amount at a later date. The dividend is typically declared at the discretion of the board of directors and is not fixed. Preferred stock is a type of stock that gives the holder … Read more
. 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
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
