A security with features of both a debt instrument (such as a bond) and an equity interest (such as a share of stock). • An example of a hybrid security is a convertible bond, which can be exchanged for shares in the issuing corporation and is subject to stock-price fluctuations.
The raising of funds by selling stocks (equity financing) or bonds (debt financing).
A corporation’s net income — assuming that all convertible securities had been transferred to common equity and all stock options had been exercised — divided by the number of shares of the corporation’s outstanding common stock.
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share, n. 1. An allotted portion owned by, contributed by, or due to someone ( each partner’s share of the profits). intestate share. The share that the renouncer of a will would take in the decedent’s assets if the decedent had left no will affecting in any way the distribution of assets. 2. One of
capital structure. The mix of debt and equity by which a business finances its operations; the relative proportions of short-term debt, long-term debt, and capital stock.
margin requirement. Securities. The percentage of the purchase price that a buyer must deposit with a broker to buy a security on margin. • This percentage of the purchase price is set and adjusted by the Federal Reserve Board. [Cases: Securities Regulation 45.11.] “Margin requirements are the statutory and administrative restrictions placed upon the percentage
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A company’s first public sale of stock; the first offering of an issuer’s equity securities to the public through a registration statement. — Abbr. IPO. [Cases: Securities Regulation 11.11. C.J.S. Securities Regulation §§ 37–38.]
initial public offering Read More »
leverage, n. 1. Positional advantage; effectiveness. 2. The use of credit or borrowed funds (such as buying on margin) to improve one’s speculative ability and to increase an investment’s rate of return. 3. The advantage obtained from using credit or borrowed funds rather than equity capital. 4. The ratio between a corporation’s debt and its
particeps criminis (pahr-t[schwa]-seps krim-[schwa]-nis), n. [Latin “partner in crime”] 1. An accomplice or accessory. See ACCESSORY. Pl. participes criminis (pahr-tis-[schwa]-peez). [Cases: Criminal Law 59, 68. C.J.S. Criminal Law §§ 127, 137, 998.] “The courts of justice will allow the objection that the consideration of the contract was immoral or illegal to be made even by
particeps criminis Read More »