What is a stock purchase agreement? Stock purchase agreements or SPAs are transaction contracts for stock sale and acquisition. Their primary purpose is to establish the price of the stock being sold. SPAs achieve this by: Listing out the prices of the stock being sold Providing a roadmap fo...
IPO is initial public offerings (initial public offering). First publicraise capital by floating stocks (Initial Public Offerings, referred to as IPO) refers to the process of issuing shares to investors through the stock market for the first time, so as to raise funds for the development of ...
What is a stock option? Why is it important for an investor to understand how stock options function?OptionThe option is a contract between two parties to buy or sell a specified number of shares for an agreed price. In option, the price at which the o...
What is a Stock? When a person owns stock in a company, the individual is called a shareholder and is eligible to claim part of the company’s residual assets and earnings (should the company ever have to dissolve). A shareholder may also be referred to as a stockholder. The terms “st...
Common stockrefers to the most common type of shares issued by a corporation and what you typically buy when you search for a share of stock through your online broker. Preferred stockis more of a hybrid between a stock and a bond, as preferred shareholders have a claim on company assets ...
What is an acquisition earnout? What is a trust fund? What is return on equity? What is investment banking? What is seller financing? What is treasury stock? What is a shareholder's agreement? What is the capital gains tax on stocks?
When you hold common stock you have a right to that stock and can purchase or sell as you choose. Common stock shareholders also have voting rights when it comes to some activities of the company. Voting weight is directly related to the amount of stock in the company that a particular ...
A stock keeping unit, or SKU, is an internal code that businesses use to identify their products and keep track of inventory. The SKU is made up of numbers and letters that indicate important information like a product’s price, color, or manufacturer.
What Is a Stock Option? A stock option (also known as an equity option) gives an investor the right—but not the obligation—to buy or sell a stock at an agreed-upon price and date. There are two types of options:puts, which is a bet that a stock will fall, orcalls, which is ...
With an employee stock purchase plan, employees have the option to buy stock in their employer at a discounted price. This is offered as a benefit of employment when they are hired, in the same way that access to a 401(k) plan for retirement savings is a benefit. The goal is that emp...