Investopedia

Continue to Site »

Narrow-Based Weighted Average

Filed Under »
Dictionary Says

Definition of 'Narrow-Based Weighted Average'

An anti-dilution provision used to ensure that investors are not penalized when companies are undergoing additional financing or issuing new shares. A narrow-based weighted average takes into account only the total number of outstanding preferred shares for determining the new weighted average price for the old shares.
Investopedia Says

Investopedia explains 'Narrow-Based Weighted Average'

The new weighted average price is adjusted for the preferred shareholder, thus providing protection against dilution. The narrow-based method is the most favorable for investors, as it lowers the price of the preferred shares more than other methods.

Articles Of Interest

  1.

    Forces That Move Stock Prices

    You can't predict exactly how stocks will behave, but knowing what affects prices will put you ahead of the pack.

  2. Knowing Your Rights As A Shareholder

    We delve into common stock owners' privileges and how to be vigilant in monitoring a company.

  3. What is the difference between preferred stock and common stock?

    Preferred and common stocks are different in two key aspects. First, preferred stockholders have a greater claim to a company's assets and earnings. This is true during the good times when the ...

  4. Guide To Embedded Options In Bonds

    Investors should be aware of embedded options that may be available in certain securities as these options may affect the value of the security.

  5. Visual Guide To Investing In Preferred Stock ETFs

    Preferred stock ETFs have become a big hit with some investors. Find out why!

  6. $1 Salaried CEOs Making Millions

    Some CEOs who are paid $1 annually are actually among the highest-paid when all forms of compensation are taken into account.

  7. How Will Your Investment Make Money?

    Discover the basic types of investment income and which asset classes pay them.

  8. How To Live Off Your Dividends

    One way to enhance your retirement income is to invest in dividend paying stocks and mutual funds.

  9. A Primer On Preferred Stocks

    Offering both income and relative security, these uncommon shares may work for you.

  10. Introduction To Convertible Preferred Shares

    These securities offer an answer for investors who want the profit potential of stocks but not the risk.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  2. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  3. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  4. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  5. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  6. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => SEG (Active Traders) [1] => SEG (Active Traders:Instrument-Stocks) [2] => SEG (Investors) [3] => SEG (Investors:Instrument-Stocks) ) time:8ms