Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Assented stock
see stock.
Assessable stock
see stock.
Authorized capital stock
see capital stock (1) under stock.
Authorized stock
see capital stock (1) under stock.
Bailout stock
see stock.
Barometer stock.
see stock
Bellwether stock.
see barometer stock under stock.
Comstock law
An 1873 federal statute that tightened rules against mailing "obscene, lewd, or lascivious" books or pictures, as well as "any article or thing designed for the prevention of conception or procuring of abortions." ( Because of the intolerance that led to this statute, the law gave rise to an English word roughly equivalent to prudery -namely, comstockery.
New York Stock Exchange
An unincorporated association of member firms that handle the purchase and sale of securities both for themselves and for customers. 0 This exchange, the dominant one in the United States, trades in only large companies having at least one million outstanding shares. - Abbr. NYSE.
Stock
n. 1. The original progenitor of a family; a person from whom a family is descended <George Harper, Sr. was the stock of the Harper line>. 2. A merchant's goods that are kept for sale or trade <the car dealer put last year's models on sale to reduce its stock>. 3. The capital or principal fund raised by a corporation through subscribers' contributions or the sale of shares <Acme's stock is worth far more today than it was 20 years ago>. 4. A proportional part of a corporation's capital represented by the number of equal units (or shares) owned, and granting the holder the right to participate in the company's general management and to share in its net profits or earnings <Julia sold her stock in Pantheon Corporation. See SHARE (2). Cf. SECURITY (4).
Stockbroker
One who buys or sells stock as agent for another. - Also termed account executive; account representative.
Stockholder
See SHAREHOLDER.
Stockjobber
See JOBBER (2).
Stockjobbing
n. The business of dealing in stocks or shares; esp., the buying and selling of stocks and bonds by jobbers who operate on their own account. - Also termed stockjobbery.
Stocks
n. A punishment device consisting of two boards that together form holes for trapping an offender's feet and hands. - Formerly also termed cippi. Cf. BILBOES (1); PILLORY. stock split. The issuance of' two or more new shares in exchange for each old share without changing the proportional ownership interests of each shareholder. ( For example, a 3-for-1 split would give an owner of 100 shares a total of 300 shares, or 3 shares for each share previously owned. A stock split lowers the price per share and thus makes the stock more attractive to potential investors. - Also termed share split.
american stock exchange
an organized stock exchange and self-regulating organization under the securities exchange act of 1934, located in new york city and engaged in national trading of corporate stocks. ( it often trades in the securities of young or small companies because its listing requirements are less strict than those of the new york stock exchange. - abbr. amex; ase.
assented stock
Stock that an owner deposits with a third person according to an agreement by which the owner voluntarily accepts a change in the corporation's securities.
assessable stock
Stock that is subject to resale by the issuer if the holder fails to pay any assessment levied on it.
authorized stock
See capital stock (1).
bailout stock
Nontaxable preferred stock issued to stockholders as a dividend. ( Bailout stock is issued to gain favorable tax rates by distributing corporate earnings at capital gains rates rather than by distributing dividends at ordinary income rates. This practice is now prohibited by the Internal Revenue Code. IRC (26 USCA) § 306.
barometer stock
A stock whose price fluctuates according to market conditions; an individual stock considered to be indicative of the strength of the market in general. - Also termed bellwether stock.
blank stock
Securities. Stock with voting powers and rights set by the issuer's board of directors after the stock has been sold.
blank stock.
See STOCK.
blue-chip stock
See BLUE CHIP.
bonus stock
A stock share that is issued for no consideration, as an enticement to buy some other type or class of security. ( It is considered a type of watered stock. - Also termed bonus share.
book-value stock
Stock offered to executives at a book-value price, rather than at its market value. ( The stock is offered with the understanding that when its book value has risen, the company will buy back the stock at the increased price or will make payments in stock equal to the increased price.
callable preferred stock
Preferred stock that may be repurchased by the issuing corporation at a prestated price, usu. at or slightly above par value.
callable preferred stock.
See STOCK.
capital stock
1 The total number of shares of stock that a corporation may issue under its charter or articles of incorporation, including both common stock and preferred stock. A corporation may increase the amount of capital stock if the owners of a majority of the outstanding shares consent. - Also termed authorized stock; authorized eapital stock; authorized stock issue; authorized shares. 2. The total par value or stated value of this stock; CAPITALIZATION (4). 3. See common stock.
capital-stock tax
See TAX.
certificate of stock
See STOCK CERTIFICATE.
class of stock
A category of corporate shares used when more than one type of stock is issued. See preferred stock and common stock under stock.
common stock
A class of stock entitling the holder to vote on corporate matters, to receive dividends after other claims and dividends have been paid (esp. to preferred shareholders), and to share in assets upon liquidation. ( Common stock is often called capital stock if it is the corporation's only class of stock outstanding. - Also termed ordinary shares. Cf. preferred stock.
common-stock equivalent
A security that is exchangeable for common stock, and thus is considered to be the same as common stock. ( Common-stock equivalents include certain types of convertible securities, stock options, and warrants.
common-stock fund
A mutual fund that invests only in common stock.
common-stock ratio
The relationship of outstanding common stock to the corporation's total capitalization. ( The common-stock ratio measures the relative claims of stockholders to earnings (earnings per share and payout ratio), cash flow (cash flow per share), and equity (book value per share). Cf. PAYOUT RATIO.
comstockery
(often cap.) Censorship or attempted censorship of art or literature that is supposedly immoral or obscene.
control stock
Stock belonging to a control person at the time of a given transaction. - Also termed control shares.
convertible stock
See convertible security under SECURITY.
corporate stock
An equity security issued by a corporation.
cumulative preferred stock
Preferred stock that must pay dividends in full before common shareholders may receive any dividend. ( If the corporation omits a dividend in a particular year or period, it is carried over to the next year or period and must be paid before the common shareholders receive any payment. - Also termed cumulative stock; cumulative preference share.
cumulative stock
See cumulative preferred stock under STOCK.
dead stock
Goods that remain in inventory because there is no market for them.
debenture stock
1 English law. A type of bond representing money borrowed by a company using its property or other fixed assets as security. 2. Stock that is issued under a contract providing for periodic, fixed payments.
deferred stock
Stock whose holders are entitled to dividends only after the corporation has met some other specified obligation, such as the discharge of a liability or the payment of a dividend to preferred shareholders.
discount stock
A stock share issued for less than par value. ( Discount stock is considered a type of watered stock, the issuance of which may impose liability on the recipient for the difference between the par value and the cash amount paid. - Also termed discount share.
donated stock
Stock donated to a charity or given to a corporation by its own stockholders, esp. for resale.
employee stock option
See STOCK OPTION (2)
employee-stock-ownership plan
A profitsharing plan designed primarily to give an employee retirement benefits and a stake in the company, but also used to allow employees to purchase their employer company if it is closing. IRC (26 USCA) § 4975(e)(7)(A). -Abbr. ESOP.
equity stock
Stock of any class having unlimited dividend rights, regardless of whether the stock is preferred.