Stock Rights Issue
Rights are offers that allow existing stockholders to buy additional shares at a predetermined price, for a set time period. Shareholders do not have to exercise these rights. They could let them expire. Alternatively, they could be traded in the open market
Why do companies offer rights? Sometimes tapping existing shareholders may be the best way to raise additional capital if they have difficulty attracting outside investors. For this reason, heavily indebted businesses will sometimes use a rights issue to pay down their obligations.
Named after economist Thorstein Veblen, who introduced the term "conspicuous consumption," a Veblen good is one whose demand increases as its price increases because consumers see it as an exclusive status symbol.
Price elasticity of demand describes how changes in the cost of a product or service affect a company's revenue.
The Consumer Confidence Index is the result of a monthly survey of 5,000 U.S. households by the Conference Board that measures how optimistic or pessimistic consumers are about the economy's current and future performance. When the index is high, consumers are expected to increase their spending on goods and services.
Investopedia explains: Income investing is a term used to describe a style of stock-picking focusing on securities that generate a cash stream - like traditional bonds, dividend-paying stocks and diversified investment structures that basket income-producing equities like mutual funds and ETFs.
A short squeeze refers to a jump in a stock's price, forcing a large number of short sellers to close their position, which in effect pushes the price even higher. When an investor shorts a stock, he borrows shares from another account and sells them, agreeing to replace the stock at a later date.
A stock buyback, or repurchase, occurs when a company buys its own shares off the market and therefore reduces the amount of stock outstanding.
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