Common stock features are the characteristics that differentiate them from other stock types. Most companies that issue common stock do so as a means of raising capital for expansion, acquiring another company, paying off debts, or purchasing tangible assets such as land, equipment, building, etc. Depending on how many times … Read more
Definition Participating preferred stock is best characterized as stock that gives the shareholder the right to receive dividends that are equal to the ordinarily specified rate that the payment of preferred dividends takes place to preference shareholders and an additional dividend on the basis of a predetermined condition. In other … Read more
The stock valuation formula varies across the methods of valuation which may fall under absolute valuation or relative valuation. These formulas and methods are explained in the article with examples. The importance of valuing stocks evolves from the fact that a stock’s intrinsic value, is not attached to its current … Read more
Is it possible for a company to have a negative book value per share? Book value is the net worth of a company. It is the difference between what it owns and what it owes. The book value per share is basically this total divided by the number of shares … Read more
Dividend payout ratio calculation is carried out by taking the yearly dividend per share and dividing it by the earnings per share. This is important because, through this, investors will have an idea of the amount of money a company returns to its shareholders compared to the amount it keeps … Read more
Tangible assets are the opposite of intangible assets which do not take a physical form and have a theorized value rather than a transactional exchange value. Tangible assets examples include physical properties with monetary value; they are usually the main forms of assets in most industries and are usually the … Read more
The dividend yield is one of the market prospect ratios that is calculated by dividing a company’s total annual dividend payments by the stock’s current price. It is an important tool for stock valuation, especially for investors interested in buying income stocks. We will take a look at dividend yield … Read more
The international bill of exchange (IBOE in Finance) is a bank instrument used as a mode of business transaction that is intended to hold everyone accountable for making timely payments. Individuals who operate a successful small business but do not want it to remain small may want to get their brand … Read more
Debt financing is a way through which startups or businesses raise funds or capital by borrowing from individuals or organizations. The funds raised by these startups or businesses come as loans; some common examples of debt financing are soft loans, term loans, convertible debts, and guarantees. Every type of debt … Read more
