H31: Shareholders

Front

What does 'cum div' mean for a stock?

Back

The buyer is entitled to the next dividend.

Front

What is a dividend?

Back

A portion of a company's profits paid to shareholders.

Front

What do you call an investor who expects stock prices to rise?

Back

Bulls.

Front

What is a capital gain?

Back

Profit made from selling an asset for more than its purchase price.

Front

What is a shareholder?

Back

Someone who owns shares in a company.

Front

What does 'ex div' mean for a stock?

Back

The buyer is not entitled to the next dividend.

Front

What is the primary purpose of dividends?

Back

To distribute a portion of a company's earnings to its shareholders.

Front

What is the difference between common and preferred shares?

Back

Common shares typically provide voting rights, while preferred shares usually have fixed dividends and priority in asset liquidation.

Front

What is a stock split?

Back

A corporate action that increases the number of shares while reducing the share price, keeping the overall market capitalization the same.

Front

What is market capitalization?

Back

The total market value of a company's outstanding shares, calculated as share price multiplied by the number of shares.