Yield to Maturity (YTM)
What is the Yield to Maturity (YTM)? Yield to Maturity (YTM) – otherwise referred to as redemption or book yield – is the speculative rate of return or interest rate of a fixed-rate security, such as a bond. The YTM is based on the belief or understanding that an investor purchases the security at the...
CCPPO Shares
What are CCPPO Shares? CCPPO (Cumulative, Convertible, Participating, Preferred-dividend Ordinary) shares are a rare type of equity shares issued by a company, which contain multiple features, including cumulative dividends, participation, convertibility into common shares, and a preferred-dividend feature. Understanding CCPPO Shares Essentially, CCPPO shares represent a combination of common and preferred shares. In the event...
Double Gearing
What is Double Gearing? Double gearing refers to the practice of borrowing money against an asset, with the money being used to buy shares of stock. Then, more money is borrowed against the shares to establish a margin loan that can be used to purchase even more shares. In short, double gearing is a form...
Supermajority Voting Provision
What is a Supermajority Voting Provision? A supermajority voting provision, an amendment to a company’s corporate charter, is a provision that states that certain corporate actions require much more than a mere majority, typically 67%-90%, approval from its shareholders to pass. In other words, a supermajority voting provision requires greater than a majority shareholder approval...
Proxy Fight
What is a Proxy Fight? A proxy fight, also known as a proxy contest or proxy battle, refers to a situation in which a group of shareholders in a company joins forces in an attempt to oppose and vote out the current management or board of directors. In other words, a proxy fight is a...
