Contingent Shares

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Dictionary Says

Definition of 'Contingent Shares'

Shares of company stock that are issued only if certain conditions are met. Contingent shares are similar to stock options, warrants and other convertible instruments in that there is a level of uncertainty associated with their issue. For example, for contingent shares to be issued, the corporation must generate earnings that exceed a certain threshold. Contingent shares are also important for common stock holders since the contingent shares can dilute the ownership of existing shareholders.
Investopedia Says

Investopedia explains 'Contingent Shares'

In the TARP bailout, the U.S. Treasury was granted contingent shares in certain companies. These shares were meant to offset the risk of loss for taxpayers. Under the terms of the agreement, the contingent shares vest automatically if the U.S. Treasury loses money as a result of purchasing the troubled assets.    
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'Contingent Shares'

  • Series 26 Study Guide - Investment Companies - Classes of Fund ...

    http://www.investopedia.com/exam-guide/series-26/investment-companies/classes-fund-shares.asp
    ... These shares also have smaller 12b-1 fees. Class B Shares: Class B shares come
    with back-end loads (contingent deferred sales charges (CDSCs)). ...

  • Series 6 Study Guide - Investment Companies - Sales Charges and ...

    http://www.investopedia.com/exam-guide/finra-series-6/investment-companies/sales-charges-expenses.asp
    ... As long as the investor holds on to the shares beyond the time period during which
    a contingent deferred sales charge (CDSC) is applicable, no sales charge ...

  • Series 26 Study Guide - Investment Companies - Mutual Fund Pricing ...

    http://www.investopedia.com/exam-guide/series-26/investment-companies/mutual-fund-pricing.asp
    ... As long as the investor holds on to the shares beyond the time period during which
    a contingent deferred sales charge (CDSC) is applicable, no sales charge ...

  • The ABCs Of Mutual Fund Classes

    http://www.investopedia.com/articles/mutualfund/05/shareclass.asp
    ... Class B Shares These shares are classified by their back-end or contingent deferred
    sales charge. These shares are typically good for investors with little ...

  • Series 65 Study Guide - Stocks and Mutual Funds - Mutual Fund ...

    http://www.investopedia.com/exam-guide/series-65/stocks-mutual-funds/mutual-fund-classes-charges-expenses.asp
    ... "B" shares: Are referred to as "back-end" load funds; In essence, the investor
    purchases the funds at NAV ... This is known as a contingent-deferred sales charge. ...

  • Series 7 Study Guide - Customer Accounts - Costs And Fees ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/costs-and-fees.asp
    ... In aC share, a higher 12b-1 exists and contingent deferred sales charge is in force
    for ... Known also as Class I, Y or K shares, they charge no load or 12b-1 fees ...

  • 6 Estate Planning Must-Haves

    http://www.investopedia.com/articles/pf/07/estate_plan_checklist.asp
    ... you choose shares your views, is financially sound and is genuinely willing to raise
    children. As with all designations, a backup or contingent individual ...

  • Should Employees Be Compensated With Stock Options?

    http://www.investopedia.com/articles/analyst/091202.asp
    ... stock buyback program that maintains a relatively stable number of publicly traded
    shares. ... the control of the company and is therefore a contingent (off-balance ...

  • The Fertilizer Wars Of 2009

    http://stocks.investopedia.com/stock-analysis/2009/The-Fertilizer-Wars-Of-2009-CF-AGU-TRA1228.aspx
    ... However, Agrium's deal was contingent on CF Industries not acquiring Terra. ... CF
    Industries may have a point, as shares fetched over $150 in August 2008. ...

  • Southern Union Now A Hot Property

    http://stocks.investopedia.com/stock-analysis/2011/Southern-Union-Now-A-Hot-Property-SUG-WMB-ETE-KMI-OKE0627.aspx
    ... that the Williams bid is taxable and still at least partially contingent on due ... have
    been attracted by the undervaluation of SUG's assets and shares, there are ...

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