Series 7 Exam Prep Equity Securities Lecture 1 of 2. SIE Exam and Series 65 Exam too!

Lecture 1 of 2 Lecture 1 Equity Securities Lecture 2. https://youtu.be/K2cT-DBLaSQ "Debt Securities "Ford Bond NOT James Bond" Lecture 1 Time Stamps: 00:00 Capitalization of a Corporation Equity and Debt lecture part 1 opening 1:58 Corporate charter 3:10 Authorized shares - maximum number of shares a corporation may issue 4:50 Issued stock - shares placed with investors 5:38 Outstanding stock- issued less treasury 6:06 Treasury stock - shares purchased by the issuing corporation in the secondary market. Treasury stock has no voting rights and pays no dividends. 11:01 Limited liability 11:23 Freely transferable interest 17:09 Residual claim 17:20 Book value 19:00 Right to inspect the books (3 10Qs and a 10 K) 21:59 Voting rights 23:06 Proxies 23:14 "street name" 24:50 Statutory or Cumulative voting 26:15 Example of statutory versus cumulative 28:53 Right to dividend if declared 30:12 Dividend payout ratio 33:45 Working capital and the effect of cash divided on working capital 37:09 Current ratio and quick ratio 38:40 Declared Date, Ex Dividend Date, Record Date, Payable Date (DERP) Ex date is Very Testable When is ex date? 1 business day prior to record date. What is ex date? First date on which the no longer trades with the dividend attached 44:20 Selling dividends is a violation of code of conduct. Very Testable 46:32 Preemptive rights to maintain proportionate ownership. Mechanism used is a rights offering Rights are short term and exercisable below the current market price at issuance 50:16 Theoretical value of a right 54:25 Standby underwritings are used in a rights offering to make sure shares get distributed 56:26 Warrants are long term and exercisable below current market price at issuance. 1:01:44 Preferred stock 1:05:59 Missed dividends in non cumulative preferred 1:07:33 Missed dividends in straight preferred 1:09:32 Convertible Preferred stock 1:09:55 Conversion ratio. Par value ÷ Conversion price = conversion ratio 1:11:15 American Depositary Receipts (ADRs) 1:14:40 Tax consequences of selling stock and receipt of dividends 1:19:00 Closing