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What happens is the put writer gets hosed. If a company goes into Chapter 7 bankruptcy, all its stock becomes worthless. Unfortunately for the people who wrote put options on the company's stock, those do NOT become worthless. If the put buyer decides to exercise the option - and he will - the writer has to buy all those shares of worthless stock at the strike price.
Company's usually issue stocks to generate capital for their business and expansion plans. When a company goes public it sells its shares to the public and gets money in return. This way they raise capital. After a stock gets listed in a notified stock exchange people trade the stock in the markets and the price of the stock may go up or down based on the way the company's business is developing
They open the company to the public and the public can then invest in shares which means the Sole Trader/Partnership is then having some of their company bought off them which means money! But then the person who has bought into the company gets a percentage of the profit made.
Preferred shareholders are the people who own a company's preferred stock. Corporations can issue several types of stock. If there are profits, the corporation the corporation may pay dividends. The company would pay the same amount to each share of stock. However, the company may have issued two types of stock, preferred and common. Preferred stock gets a percentage of the face value as a dividend say 5%. Common stock gets a percentage of the profits that are left. So if a person has a $100 share of preferred, and the company declares a dividend, the preferred shareholders are paid first. He gets his $ 5.00 first. He is a preferred shareholder. The rest of the dividend is divided among the common shareholders. So Preferred Shareholders get paid first. Their dividend will never go up. It will go down if the company does not pay its dividend.
The mortgage company gets the money.
What happens is the put writer gets hosed. If a company goes into Chapter 7 bankruptcy, all its stock becomes worthless. Unfortunately for the people who wrote put options on the company's stock, those do NOT become worthless. If the put buyer decides to exercise the option - and he will - the writer has to buy all those shares of worthless stock at the strike price.
No. Prefered stock is just stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends. This means a person that bought prefered stock always gets the same divided, even when the company is losing money and cannot continue to give dividends on other classes of their stock.
No. Prefered stock is just stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends. This means a person that bought prefered stock always gets the same divided, even when the company is losing money and cannot continue to give dividends on other classes of their stock.
It can be two ways. If the other company is a publicly traded company, the shares of the acquired company would get merged with the acquiring company's shares. All shareholders of the acquired company would be issued new shares of the acquiring company at a ratio that would be defined during the acquisition. If the other company is not a publicly traded company, they may opt to retain the stocks in the market of buy them all from the investors at a predefined price that gets fixed during the acquisition.
the company leasing them gets them back they own them same as renting things.
Company's usually issue stocks to generate capital for their business and expansion plans. When a company goes public it sells its shares to the public and gets money in return. This way they raise capital. After a stock gets listed in a notified stock exchange people trade the stock in the markets and the price of the stock may go up or down based on the way the company's business is developing
It depends on the contract the COO has made with the employing company. There is no law that says "A COO gets options on 100,000 shares of stock." The company might not issue stock, might not have stock options, might not use options to pay its executives...
They open the company to the public and the public can then invest in shares which means the Sole Trader/Partnership is then having some of their company bought off them which means money! But then the person who has bought into the company gets a percentage of the profit made.
A credit spread is when a person purchases some interest in a company and gets a discount on buying more of the same stock. A credit spread is used mostly when the stock is in a troubled company.
Preferred shareholders are the people who own a company's preferred stock. Corporations can issue several types of stock. If there are profits, the corporation the corporation may pay dividends. The company would pay the same amount to each share of stock. However, the company may have issued two types of stock, preferred and common. Preferred stock gets a percentage of the face value as a dividend say 5%. Common stock gets a percentage of the profits that are left. So if a person has a $100 share of preferred, and the company declares a dividend, the preferred shareholders are paid first. He gets his $ 5.00 first. He is a preferred shareholder. The rest of the dividend is divided among the common shareholders. So Preferred Shareholders get paid first. Their dividend will never go up. It will go down if the company does not pay its dividend.
The mortgage company gets the money.
When the market capitalization of the stock issued by a company exceeds USD 5 billion dollars, it gets classified as a large cap. stock. Market Capitalization = # of outstanding shares * Current Stock Price per share