Anti-Dilution Provisions
What are Anti-Dilution Provisions? Anti-dilution provisions are clauses that allow investors the right to maintain their ownership percentages in the event that new shares are issued. They are rights that are usually associated with preferred shares. Understanding Anti-Dilution Provisions Anti-dilution provisions protect an investor’s equity stake from dilution. A company may issue new shares with...
Non-Covered Security
What is a Non-Covered Security? The term non-covered security refers to a legal definition of securities, the details of which may not necessarily be disclosed to the Internal Revenue Service (IRS). The competent authority that makes such designations for tax reporting purposes in the U.S. is the Securities and Exchange Commission (SEC). The designation entails...
Market Value
What is Market Value? Market value is usually used to describe how much an asset or company is worth in a financial market. It is mutually determined by market participants and is interchangeably used for market capitalization when dealing with assets and companies. Relationship between Market Value and Market Price On the other hand, market...
Market Price
What is Market Price? The term market price refers to the amount of money for what an asset can be sold in a market. The market price of a given good is a point of convergence of the demand and supply for that good. It is an important aspect of calculating consumer surpluses, economic surpluses,...
Allotment
What is Allotment? The term allotment, in business, refers to the structured and systematic distribution of the business’ resources. Commonly, the term allotment is used in the context of equity distribution in finance. A company that offers its shares to the public uses the process of allotment to determine the amount of stock offered to...
