EGM: Definition, Examples, AGM. Who can call for an AGM? The shareholders of a company may call for an annual general meeting (AGM). The shareholders may pass a resolution at the AGM to direct the board of directors to convene a special general meeting (SGM). How do you conduct an AGM meeting? The Annual General … Read more
The term “undersubscribed” refers to a situation in which there are more shares of a stock available for purchase than there are buyers willing to purchase them. This can occur when a company’s share price is falling and investors are reluctant to buy, or when a company is not well-known and its shares are not … Read more
A share certificate is a legal document that proves ownership of shares in a company. The certificate is issued by the company and lists the name of the shareholder, the number of shares owned, and other important information. Shareholders use share certificates as proof of ownership when transferring or selling their shares. Are share certificates … Read more
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
Decoupling is a term used to describe the independence of two variables. In the financial world, decoupling refers to the independence of stock prices from the overall performance of the economy. For example, even when the economy is in a recession, some stocks may continue to rise in value. What are the methods of decoupling … Read more
A dual listing occurs when a company’s shares are listed on more than one stock exchange. This can happen when a company expands into new markets or when a company is too big to be listed on just one exchange. A dual listing can also happen when a company is listed on a foreign exchange … Read more
A micro cap is a publicly traded company with a market capitalization of between $50 million and $300 million. Micro cap stocks are usually traded on the over-the-counter (OTC) market or in the pink sheets. Micro cap stocks are considered to be more risky than large cap stocks, but they also have the potential for … Read more
An option pool is a percentage of a company’s outstanding shares that are set aside for employees. The size of the option pool is typically determined at the time of a company’s IPO, and is usually between 10-20% of the total number of shares outstanding. How much should I set aside for option pool? There … Read more
A stock power is a document that gives another person the authority to buy or sell shares of stock on your behalf. The person you give this authority to is typically called your broker. Who is the legal owner of a custodial account? The legal owner of a custodial account is the account holder, who … Read more
An income deposit security (IDS) is a type of investment that pays periodic interest payments and offers the potential for capital appreciation. IDSs are typically issued by banks and other financial institutions and are backed by a pool of loans or other assets. Interest payments from an IDS are generally paid out monthly, quarterly, or … Read more
