Allocation in accounting refers to the process of distributing resources, costs, or investments among various accounting entities or activities.
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE). Launched in June 1995 to replace the Unlisted Securities Market, AIM provides a platform for smaller, growing companies to raise capital and have their shares publicly traded without the significant costs and regulatory complexities associated with a full market listing.
An application form is a document issued by a newly floated company, accompanied by its prospectus, that members of the public use to apply for shares in the company.
Colloquial name for any of the ordinary shares in the most highly regarded companies traded on a stock market. Blue-chip companies have a well-known name, a good growth record, and large assets.
A method of raising capital where a company sells new shares to an underwriter, who then resells them to the market.
Understand the various means used by companies to raise finance including shares, debentures, loans, options, and warrants, and the important distinctions and regulations that govern them.
Capital stock represents the equity shares held in a corporation. In the USA, the two fundamental types of capital stock are common stock and preferred stock.
An incorporated organization in which the liability of members is limited by the constitutional documents to the amounts paid, or due to be paid, for shares. In the UK, this is the most popular form of company.
An amount paid above the average market value of shares to gain enough ownership to set policies, direct operations, and make decisions for a business. Contrast with Minority Discount.
Financing involves the act of providing funds for business activities, making purchases, or investing. It enables companies to meet their objectives through various financial instruments like loans, investment, shares, or bonds.
A fractional share represents a unit of stock that is less than one full share. Fractional shares arise from stock dividends, stock splits, or dividend reinvestment plans.
The grey market comprises markets for legal trading of goods that are in short supply or shares that are not yet issued but will be issued shortly, offering price anticipation and the potential for losses if allocations do not match expectations.
In commercial and property law, 'holding' refers to property to which one has legal title and of which one is in possession. The term may also refer to the ownership of stocks or shares in corporations.
The Initial Public Offering (IPO) is the first sale of shares by a private company to the public. IPOs are critical as they help companies raise capital and expand their operations, but setting the issue price correctly can be a challenging task.
A method of issuing new securities in which a broker or issuing house takes small quantities of a company's shares and issues them to clients at opportune moments. This method is also used by existing public companies that wish to issue additional shares.
Investment software is a computer program designed to track and manage investments in shares, cost, and revenue. These programs often include price and dividend histories of securities, enabling users to make comparisons with major market indicators and analyze tax ramifications of investment decisions.
A limited company is a type of company structure where the liability of members is restricted to their investment or guarantee amount.
A financial institution similar to a Savings and Loan Association (S&L) but organized as a cooperative. It is owned by its members, with deposits representing shares. Members, as shareholders, vote on the association’s affairs and receive income in the form of dividends.
Nominal value refers to the face value of a security as stated by the issuer, often used interchangeably with 'par value.' It represents the value printed on the instrument, such as a bond or share certificate.
Learn about the 'Offer by Prospectus', a method of offering new shares or debentures to the public, including requirements, examples, FAQs, related terms, and further resources.
The offering price is the price per share at which new or secondary distribution of securities is offered for sale to the public. It is also commonly referred to as the public offering price.
An Open-End Investment Company (commonly known as a mutual fund) is an investment vehicle that continually issues new shares and allows investors to redeem shares at any time.
An ordinary share is a type of equity ownership in a company that typically provides its holder with voting rights and a share of the company's profits.
Outstanding capital stock refers to the total shares of a corporation that are currently held by all its shareholders, including retail investors, institutional investors, and company insiders. It is calculated by subtracting the number of treasury shares from the total issued shares.
Participating Interest refers to an interest held by an entity in the shares of another entity, maintained on a long-term basis to exercise some measure of control or influence over the activities of the second entity.
In accounting and finance, the term 'premium' can refer to the consideration payable for a contract of insurance, an amount in excess of the nominal value of a share, or an amount in excess of the issue price of a share or other security. Premiums play a significant role in insurance policies and in the valuation of shares and securities.
A private limited company is a type of business entity which has limited liability and restricted ownership, preventing it from offering shares to the public.
A Public Limited Company, abbreviated as PLC or (c.c.c.) in Welsh, is a type of company whose shares are traded freely on a stock exchange and can be bought by the general public. These companies adhere to more complex regulations and scrutiny to ensure transparency and protect investors.
A public offering involves inviting the public to apply for a new issue of shares or other securities, typically through advertisements in the national press and at a price fixed by the issuing company.
Redemption refers to the repayment of shares, stocks, debentures, or bonds as specified at the time of issue, often including a fixed redemption date and amount.
A statutory book where companies must document the interests of its directors in shares and debentures, accessible during the annual general meeting.
Scrip refers to a certificate, written document, or token that ultimately serves as evidence of ownership of stocks, shares, or bonds. It can also be issuance documentation when additional shares are provided to current shareholders, known as a scrip issue.
A secondary offering, also known as a secondary distribution, is the sale of new or closely held shares of a company by investors, usually institutions, who are selling off their positions entirely or part of it.
Shares represent units of ownership in a company, conferring certain rights such as earning dividends and voting in company matters. They can differ in type, such as ordinary shares and preference shares, and their trading is subject to various regulations depending on whether the company is public or private.
A share issued at a price above its par value is referred to as being issued at a premium. The premium is the difference between the issue price and the par value of the share.
Stamp Duty is a tax collected for stamping legal documents, primarily related to the transfer of shares, securities, and land. It is calculated based on the consideration given, with a specific rate that may be rounded up to the nearest multiple of a designated currency unit.
The stock market is a complex network of exchanges and investors engaged in buying, selling, and issuance of shares from publicly held companies, facilitating capital growth and wealth building.
Stock transfer refers to the process of transferring the ownership of stock or shares from one person to another. It's a critical mechanism in corporate finance that enables the buying and selling of company shares in the stock market.
A stockholder, also referred to as a shareholder, is an individual or organization that holds at least one share of a company's stock, granting them fractional ownership in the corporation.
Street name refers to the practice of holding securities in the name of a broker or another nominee instead of the customer's own name. This facilitates easier and faster transfer of shares.
A syndicator is a person or organization responsible for selling investments in shares or units within a syndicate.
A trust share signifies partial participation and ownership in a corporation's management. It entitles the holder to a portion of the profits.
An underwriter assesses risks and decides whether or not these risks can be insured, setting the appropriate premium charges, typically based on the frequency of past claims. Additionally, underwriters play a crucial role in financial transactions by guaranteeing to buy unsold shares during new issue offerings.
Unissued stock refers to shares of a corporation's stock authorized in its charter but not yet issued. These shares are displayed on the balance sheet along with shares that are issued and outstanding. Unissued shares do not pay dividends and cannot be voted. They differ from treasury stock, which is issued but not outstanding as it has been reacquired by the corporation.
The term 'Unit of Trading' refers to the normal number of shares, bonds, or commodities that constitute the minimum unit of trading on an exchange.
The storage of goods in a warehouse or the act of building up a holding of shares in a company prior to making a takeover bid by buying small lots of shares and 'warehousing' them in the name of nominees.
