Common & Preferred Stock
Carries a dividend preference in relation to common stock
Preferred stock
An unwelcomed attempt to purchase the shares of a company
Hostile takeover
An advantage of going public
Owners are able to diversify their investments, a liquid asset is created, new cash can be raised for growth
The only publicly owned team in the National Football League
Green Bay Packers
IPO stands for
Initial public offering
The most frequently issued and utilized stock
Common stock
Makes a company less attractive to any potential takeover attempt; requires huge payments to executives if they are terminated
Golden parachute contracts
Ratio that is used to tell if a stock is overvalued
Price to earnings ratio
In 2002, this Boston professional sports team was bought out for $360 million and again became a privately owned team
Boston Celtics
The process of selling to prior shareholders is referred to as
Subscription
Investors try to minimize this when investing
Risk
Stockholders can exert their power over corporations with this major power
Voting power
The process in which employees buy stock in a company (ESOP)
Employee stock ownership plan (ESOP)
In 1998, this Cleveland professional sports team became publicly traded and also won the world series
Cleveland Indians
The practice among those with power or influence of favoring relatives or friends, especially by giving them jobs
Nepotism
A benefit that is available for preferred stockholders
The right to dividend payments before common stock shareholders receive dividend payments, subscription privileges to future stock offerings, the right to convert preferred stock to common stock
Allows management to buy shares of their own company at a fixed discounted price; can discourage hostile takeover attempts
Warrants
Developed before making a stock offering by the issuer or underwriter describing the company and all the potential risks and benefits associated with purchasing the company's stock
Prospectus
A corporation that participates in only one industry segment
Pure play company
An abbreviation used to uniquely identify publicly traded shares of a particular stock
Stock symbol or ticker symbol
A technique that reduces the risk of purchasing stocks
Invest in a mutual fund, or dollar cost averaging
This right protects a stockholders' power of control and prevents dilution of a stock's value
Preemptive right
Process in which shareholders have the first right to buy new shares of a company
Preemption
Company which encompasses a team and other unrelated businesses
Blended company
NASDAQ stands for
National Association of Securities Dealers Automated Quotations