Should you cash in your company stock when vested?
You can do whatever you want with it. I've taken company matched stock when I saw it was not performing and traded it for something else in my portfolio. You should hang on to it for a little while before you trade it.
This is just my opinion and what I have done. I wouldn't cash it in because you're going to have to pay penalties and such....
If most investors expect the same cash flows from companies A and B but are more confident that A's cah flows will be closer to their expected value WHICH company should have the higher stock price?
Vested means that what ever the award or item is is now really entirely the one it was awarded to. Most commonly in something like a 401K plan, if the company provides a matching contribution, or awards stock bonus, the amount of either may not be allowed to be taken or withdrawn, or really becomes fully owned, by the employee for some time....frequnetly 25% of it each year is ... for 4 years....at which point…
so i have 4thousand shares of ahc stock i belive. im not sure abotu all this i just know i signed up for it while working fo rthe company, i quit, and now i have to wait 6 years before i can cash it out. now 3 years later the vested market value is 9093.81 and i was wondering how to sell them. Thanks
From InvestorWords.com: A dividend paid as additional shares of stock rather than as cash. If dividends paid are in the form of cash, those dividends are taxable. When a company issues a stock dividend, rather than cash, there usually are not tax consequences until the shares are sold. These additional shares of stock are usually distributed to shareholders at no cost. Please see the following site for additional information: http://en.wikipedia.org/wiki/Dividend
== == From my understanding, excess stock can have several issues. First of all it wastes valuable space which can be used more efficiently running other things. Secondly, excess stock can mean that the company may suffer from wastage, as the stock can depreciate, or if the stock is a food product, it can expire. It would be best to ensure that stock is kept to a sustainable level for any organisation. If there are…
Hi, In the insurance industry, companies are categorized as stock company or mutual company. When company want to become a public company (stock comapny), meaning having their shares of stocks listed to the public, they would have to demutualize. Since, mutual company, the owners of policies are technically consider owner of the company, when an insurance company wants to demutualize, they would have to compensate their clients with shares of stock. The number of stocks…
What events will appear in the cash flows from financing activities section of the statement of cash flows?
Cash inflow - they are offering the public a chance to earn dividends (profits regularly distributed) in exchange for cash to run the company or do research or buy some technology or even another company. Sometimes a company has outgrown it's facilities and needs to buy new ones but it doesn't have the cash or credit to do this, making a public offering of stock can bring this sort of cash. A lot of companies…
Why do public companies want to maintain a high stock price How do they make money by keeping the stock up?
Maintaining a high stock price allows a company to access the capital markets by issuing more stock at these higher prices and bringing in more cash for the company to use in its business. A high stock price is also a sign of investor confidence in the company, as well as a necessary requirement to maintain a stock exchange listing or bring in institutional investors as holders of the stock.
Period expenses which do not affect the cash flow of the company should be excluded from the cash flow statement and how true is this statement?
A stock trades for 1.25 per share What might that company actually do in order to avoid being classified as a penny stock?
A "penny stock" has different meanings, but generally a stock is considered to be a penny stock if its share price is below $5 a share. A company can do several things to avoid this classification: 1. Do a reverse split. The company decreases its share count by a factor that increases the share price by this same multiple. This is the opposite of the more commonly known forward stock split. 2. Focus on positive…
that means Cash should be first. For example, there is a company A. People anticipated that the interest of stock for the company would be 20%. but Actually, people got only 5% after 1year. then what's the point. If they invested money into the govenment's bond, they would have got 7% interests. Therefore, investor won't take on an additional risk unless they expect to be compensated with additional returns. Only additional cash can be a…
Generally in the format of: Cash (cash paid up front) Common Stock Subscribed Receivable (remaining amount due) Common Stock Subscribed (Temporary 'Legal Capital' Account) Additional Paid In Capital - Common When fully paid, post: Cash (cash paid) Common Stock Subscribed Receivable Common Stock Subscribed Common Stock
One of the major benefits of selling stock in a company is that it is a source of ready cash. It is money that does not have to be repaid or cost any interest as a loan would. On the other hand you also lose a portion of your company by selling the stock. That means you now have a commitment to your stock holders to run the business properly.
Identify the cash flows available to an investor in stock. How reliably can these cash flow be estimated?
A purchase was made of 40000 shares of a company's stock for 232000 dollars which this represents 40 percent of the outstanding stock so what does the entry to record this transaction include?
If you own a company and you give the company cash and equipment in exchange for common stock how is that listed on the companies spreadsheet?
In a cash-for-equity situation: * Increase the cash account by the amount of cash given * Increase the paid in capital account by the amount of cash given In an equipment-for-equity situation: * Increase the fixed assets account by the net value of the equipment (after depreciation to date) * increase the paid in capital account by the net value of the equipment
CFROI is a valuation that assumes that the stock market sets prices based on the company's cash flow and not on the corporate performance and earnings. It is calculated by comparing the gross cash flow generated by the company and the gross investment done into the same. Formula: CFROI = Gross Cash Flow / Gross Investment Here Gross Investment refers to the Market Capitalization of the company.
An Employee stock option is a call option on a company's own stock issued as a form of non-cash compensation. A stock option granted to specified employees of a company. ESOPs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. When the employees exercise their stock options, shares would be issued and thus, outstanding shares would increase.
What are two reasons stockholders might be indifferent between owning stock of a firm with volatile cash flows and that of a firm with stable cash flows?
If the elimination of volatile cash flows through risk management techniques does not significantly change a firm's expected future cash flows and WACC, investors will be indifferent to holding a company with volatile cash flows versus a company with stable cash flows. Note that investors can reduce volatility themselves: (1) through portfolio diversification, or (2) through their own use of derivatives.
Increase in common stock would mean increase in stocks available for sale but that depends if the face value or market value per share increases too. If it increases, then there will be future cash inflow to the company when the said stocks available for sale are sold. If there is no increase, it will not affect the profitability of the business because it just means stock splits.