Old Stock

(noun)

The largest Old-Stock Protestant denominations (Methodist, Baptist, Presbyterian, Disciples of Christ, Congregational, and some Lutheran groups) loudly denounced the war at first; it was God's punishment for sin, they said.

Related Terms

Examples of Old Stock in the following topics:

  • Domestic Discontent with the War

    • Old-Stock Americans and Irish-Americans opposed U.S. entry into World War I, but Wilson made appeals to gain their support.
    • Among these dissenters, some of the loudest protests came from so-called Old-Stock Americans, as well as Americans of Irish descent.
    • The dominant voice in American politics at the time of World War I was that of Old-Stock Americans, who were white and primarily Protestant Christians.
    • Wilson, therefore, knew religion could be utilized in American foreign policy and that by showing German militarism to be morally evil, the Old Stock would throw enormous weight behind the war effort.
    • Explain why Irish-Americans were adamantly against aiding the British in the war and how Wilson harnessed the moralism of the "old stock" to support it

  • Stock Dividends

    • The stock dividend is not, however, exactly the same as a stock split.
    • A stock split is paid by switching out old shares for a greater number of new shares.
    • The company is essentially converting to a new set of shares and asking each shareholder to trade in the old ones.
    • Stock dividends may also be paid from non-outstanding stock or from the stock of another company (e.g. its subsidiary).
    • Create a journal entry to record a stock dividend and a stock split

  • Stock Splits

    • A stock split increases the number of shares outstanding without changing the market value of the firm.
    • A stock split or stock divide increases the number of shares in a public company.
    • They would split their stock 2-for-1.
    • That means that every shareholder trades in one old share and gets two new shares in return.
    • Berkshire Hathaway has famously never had a stock split, and has never paid a dividend.

  • Variance

    • They are safer than a stock, but riskier than a money market and their average returns reflect that.
    • The small number comes from the TC scenario where the stock returns 10%, which is very close to our expectation of 9.25%.
    • The bigger numbers come from winters that are extreme -- when the stock performs way above 9.25% (HG) or way below it (WB).
    • A 30 year old with a 401K can be much more aggressive in his portfolio than a 65 year old who will be retiring in one year can.
    • It would be just as foolish for the 65 year old to be investing in aggressive stocks as it would for the 30 year old to buy conservative CD's in his retirement account.

  • Impact of Dividend Policy on Clientele

    • Change in a firm's dividend policy may cause loss of old clientele and gain of new clientele, based on their different dividend preferences.
    • This set of clientele could choose to sell the stock.
    • Clientele may choose to sell their stock if a firm changes its dividend policy, and deviates considerably from its preferences.
    • Therefore, stock value is unaffected.
    • As a result, an investor may stick with a stock that has a sub-optimal dividend policy because the cost of switching investments outweighs the benefit the investor would receive by investing in a stock with a better dividend policy.

  • Reverse Splits

    • Reverse splits are when a company reduces the number of shares outstanding by offering a number of new shares for each old one.
    • That is the premise behind a reverse stock split.
    • In a reverse stock split (also called a stock merge), the company issues a smaller number of new shares.
    • New shares are typically issued in a simple ratio, e.g. 1 new share for 2 old shares, 3 for 4, etc.
    • If a company completes reverse split in which 1 new share is issued for every 100 old shares, any investor holding less than 100 shares would simply receive a cash payment.

  • Accounting for Sale of Stock

    • How the stock sale is accounted for depends on the type of stock sold.
    • How the stock sale is accounted for depends on the type of stock sold.
    • Most stock sales involve common stock or preferred stock.
    • Most stock sales involve common stock or preferred stock.
    • Summarize how to account for the sale of common stock, preferred stock and treasury stock

  • Methods of Paying Dividends

    • Dividends, which are distributed based on how many shares each person owns, can be paid using cash, stock, or other company property.
    • Thus, if a person owns 100 shares and the cash dividend is 50 cents per share, the holder of the stock will be paid 50 dollars.
    • Stock or scrip dividends are those paid out in the form of additional stock shares of the issuing corporation or another corporation, such as its subsidiary corporation.
    • For example, for every 100 shares of stock owned, a 5% stock dividend will yield 5 extra shares.
    • A common technique for "spinning off" a company from its parent is to distribute shares in the new company to the old company's shareholders.

  • Preferred Stock

    • Preferred stock usually carries no voting rights, but may carry a dividend, have priority over common stock upon liquidation and/or have other benefits.
    • In other words, in the case of liquidation or bankruptcy, preferred stock will have claim to assets before common stock, but after corporate bonds or other debt instruments.
    • Preferred stock usually carries no voting rights, but may carry a dividend and may have priority over common stock in the payment of dividends and upon liquidation.
    • Some examples are prior preferred stock (highest priority), preference preferred stock, convertible preferred stock (exchangeable for common stock), cumulative preferred stock, exchangeable preferred stock, participating preferred stock, putable preferred stock, monthly income preferred stock, and non-cumulative preferred stock.
    • Preferred Stocks are considered a hybrid security with properties of both stocks and bonds, but are subordinate to bonds when it comes to rights of claim to company assets.

  • Accounting for Preferred Stock

    • Preferred stock is a class of capital stock that carries certain features or rights not carried by common stock.
    • When a corporation issues both preferred and common stock, the preferred stock may be:
    • Stock preferred as to assets is preferred stock that receives special treatment in liquidation.
    • Convertible preferred stock is preferred stock that is convertible into common stock of the issuing corporation.
    • Convertible preferred stock is uncommon, most preferred stock is nonconvertible.