ST-1 pg 293
Proxy- A document giving one person the authority to act for another typically the power to vote shares of a common stock.
Proxy fight- An attempt by a person or group to gain control of a firm by getting its stockholders to grant that person or group the authority to vote its shares to replace the current management
Takeover- An action whereby a person or group succeeds in ousting a firms management and taking control of the company.
Preemptive Right- A provision in the corporate charter or bylaws that gives common stockholders the right to purchase on a pro rata basis new issues of common stock
Classified Stock- Common stock that is given a special designation such as class a or class b to meet special needs of the company,
Founders Shares- Stock owned by the firms founders that has sole voting rights but restricted dividends for a specific number of years.
Marginal Investor- A representative investor whose actions reflect the beliefs of those people who are currently trading a stock. It is the marginal investor who determines a stocks price.
Marker Price P0- The price at which a stock sells in the market.
Growth Rate- The expected rate of growth in dividends per share.
Required rate of return Rs- The minimum rate of return on a common stock that a stockholder considers acceptable.
Expected rate of return Rs- The rate of return on a common stock that a stockholder expects to receive in the future.
Actual (realized) rate of return Rs- The rate of return on a common stock actually received by stockholders in some past period. Rs may be greater or less than Rs and or Rs.
Dividend yield- The expected dividend divided by the current price of a share of stock
Capital Gains Yield- The capital gain during a given year dividend by the beginning price.
Expected Total Return- The sum of the expected dividend yield and the expected capital gains.