Equities and Equity Indices

Raymond H. Chan, Yves ZY. Guo, Spike T. Lee and Xun Li
Additional contact information
Raymond H. Chan: City University of Hong Kong
Yves ZY. Guo: BNP Paribas CIB
Spike T. Lee: The Chinese University of Hong Kong
Xun Li: The Hong Kong Polytechnic University

Chapter Chapter 5 in Financial Mathematics, Derivatives and Structured Products, 2024, pp 51-60 from Springer

Abstract: Abstract Equity is the claim of ownership of a company. Equity securities issued by corporations are called stocks or shares. In this book, we only consider the publicly traded stocks, which are listed on stock exchange. The main equity securities are Common stock (ordinary stock)Common stock: a common share owner has voting right and is entitled to dividends. In case of liquidation of the company, the shareholder of a common share has the lowest priority for the liquidation assets. Preferred stockPreferred stock: the holder of a preferred stock has no voting right but has the priority for dividend payments and liquidation assets over the common share holder. Many preferred shares pay dividends in the form of fixed coupons, like a perpetual bond. There are several types of preferred shares: a convertible preferred share gives its holder the right to convert the preferred share into a common share; a cumulative preferred share allows dividends omitted in the past (e.g. due to profitability issue) to be paid later.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-9534-9_5

Ordering information: This item can be ordered from
http://www.springer.com/9789819995349

DOI: 10.1007/978-981-99-9534-9_5

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().