President Trump spoke with Saudi Arabia and Russia about the crude oil price war and believes that they will end their dispute “in a few days.” That seems overly optimistic because there’s a good chance that those nations intentionally crashed world oil markets to undermine U.S. energy production for their personal gain. And even an…
Dividends are Disappearing Companies are increasingly suspending or reducing dividends Government loan rules and credit market turmoil crimp balance sheets Goldman says S&P 500 dividends will reduce 38% in the next nine months Investors are saying goodbye to their dividends as companies suspend payouts amid the COVID-19 crisis. Dividends are portions of company earnings distributed…
A company’s prospectus is a formal legal document designed to provide information and full details about an investment offering for sale to the public. Companies are required to file the documents with the Securities and Exchange Commission (SEC). The prospectus documents must be made available to a prospective public investor prior to purchase. Investors are encouraged to…
Carnival Corporation & Plc (CCL) announced a $1.25 billion secondary offering when the battered cruise ship line’s stock was trading at $13.00 on Tuesday morning. The news triggered another rush for the exits, dropping the stock more than 32% in two sessions, forcing two quick cuts in the sale’s value. It’s now set to offer…
What Is Interest Rate Sensitivity? Interest rate sensitivity is a measure of how much the price of a fixed-income asset will fluctuate as a result of changes in the interest rate environment. Securities that are more sensitive have greater price fluctuations than those with less sensitivity. This type of sensitivity must be taken into account…
What Is an Unfair Trade Practice? Unfair trade practices refer to the use of various deceptive, fraudulent, or unethical methods to obtain business. Unfair business practices include misrepresentationfalse advertising or representation of a good or service, tied sellingfalse free prize or gift offers, deceptive pricing, and noncompliance with manufacturing standards. Such acts are considered unlawful…
What Is an Allotment? The term allotment refers to the systematic distribution or assignment of resources in a business to various entities over time. Allotment generally means the distribution of equity, particularly shares granted to a participating underwriting firm during an initial public offering (IPO). There are several types of allotment that arise when new…
Shares of The Kroger Co. (KR) extended their rally during Wednesday’s session after the company reported a sharp 30% increase in March comparable sales. The move was driven by dramatically heightened demand in the middle of the month as consumers stockpiled food. While these trends tapered by the end of the month, sales remained higher…
Controversial earmarks always make for sensational headlines, usually casting a politician in a negative light. Even though the media often focuses on these scandals, politicians keep trying to put them in legislation, either hoping no one will notice or at least not mind too much. Meaningful earmark reform is something many Washington watchdog groups want,…