23 relations: Capital gain, Capital structure, Capital structure substitution theory, Clientele effect, Corporate action, Dividend, Dividend discount model, Dividend puzzle, Dividend tax, Equity premium puzzle, Franco Modigliani, Growth stock, Investor, Merton Miller, Minimum acceptable rate of return, Modigliani–Miller theorem, Myron J. Gordon, Net present value, Return on investment, Share price, Share repurchase, Shareholder, Treasury stock.
A capital gain refers to profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price.
In finance, particularly corporate finance capital structure is the way a corporation finances its assets through some combination of equity, debt, or hybrid securities.
In finance, the capital structure substitution theory (CSS) describes the relationship between earnings, stock price and capital structure of public companies.
The clientele effect is the idea that the set of investors attracted to a particular kind of security will affect the price of the security when policies or circumstances change.
A corporate action is an event initiated by a public company that will bring an actual change to the securities—equity or debt—issued by the company.
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.
The dividend discount model (DDM) is a method of valuing a company's stock price based on the theory that its stock is worth the sum of all of its future dividend payments, discounted back to their present value.
The dividend puzzle is a concept in finance in which companies that pay dividends are rewarded by investors with higher valuations, even though, according to many economists, it should not matter to investors whether a firm pays dividends or not.
A dividend tax is the tax imposed by a tax authority on dividends received by shareholders (stockholders) of a company.
The equity premium puzzle refers to the inability of an important class of economic models to explain the average premium of a well-diversified U.S. equity portfolio over U.S. Treasury Bills observed for more than 100 years.
Franco Modigliani (June 18, 1918 – September 25, 2003) was an Italian-American economist and the recipient of the 1985 Nobel Memorial Prize in Economics.
In finance, a growth stock is a stock of a company that generates substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the average company within the same industry.
An investor is a person that allocates capital with the expectation of a future financial return.
Merton Howard Miller (May 16, 1923 – June 3, 2000) was an American economist, and the co-author of the Modigliani–Miller theorem (1958), which proposed the irrelevance of debt-equity structure.
In business and engineering, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other projects.
The Modigliani–Miller theorem (of Franco Modigliani, Merton Miller) is an influential element of economic theory; it forms the basis for modern thinking on capital structure.
Myron Jules Gordon, (October 15, 1920 – July 5, 2010) was an American economist.
In finance, the net present value (NPV) or net present worth (NPW) is a measurement of profit calculated by subtracting the present values (PV) of cash outflows (including initial cost) from the present values of cash inflows over a period of time.
Return on investment (ROI) is the ratio between the net profit and cost of investment resulting from an investment of some resource.
A share price is the price of a single share of a number of saleable stocks of a company, derivative or other financial asset.
Share repurchase (or stock buyback) is the re-acquisition by a company of its own stock.
A shareholder or stockholder is an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation.
A treasury stock or reacquired stock is stock which is also bought back by the issuing company, reducing the amount of outstanding stock on the open market ("open market" including insiders' holdings).