We use the Treasury Stock method to determine the net impact of option dilution.
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The move came a day after the company said it would sell all of its treasury stock, representing nearly 2% of shares outstanding, through a private placement to professional investors.
The Treasury bought preferred stock in over 700 banks to give them an additional capital cushion, while mortgage backed securities and mark to market accounting were wiping bank capital out.
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And since they can direct 30% of their assets into whatever they please, BDCs can finagle higher income through investments in anything from Treasury bonds to Microsoft stock.
The Treasury holds senior preferred stock following the government's actions in putting the company into conservatorship, along with the older Fannie Mae, in 2008 at the height of the mortgage crisis.
The cbot had futures on grains, Treasury bonds and the Dow stock indexes.
Investor 2 preserved his capital in cash over the period while Investor 3 experienced a double-digit return as money fled the stock market into Treasury bonds.
It emerged that Citigroup has begun discussions on how to reduce the American government's 34% stake in the bank, which the Treasury bought through a preferred-stock conversion.
It would allow the Treasury Department to buy the companies' stock for up to two years.
The Treasury Department plans to sell the preferred stock of deadbeat banks such as Saigon National as part of its plans to close TARP.
But reasonably sophisticated investors can create the same product themselves by purchasing a risk-free zero-coupon Treasury bond and call options on a stock index, such as XSP options traded on the Chicago Board Options Exchange.
Investing in Treasury securities may offer lower returns than the stock market but they offer a safe haven during times of market volatility.
Barbara Ryan, an analyst at Deutsche Bank who rates Pfizer stock a "buy, " says she expects the stock to "trade like a treasury bond" until Pfizer takes a big strategic step, like a major acquisition.
If the government treated the UAW in the manner required by bankruptcy law, it could have given the stock and promissory notes to the Treasury instead of to the UAW. Labor cost savings and not supporting Delphi pensions would have increased the value of the taxpayers' shares of GM, while GM would have needed less financing.
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For instance, if the Treasury Department is allowed to buy Fannie Mae's stock, will its shares be just like anyone else's?
But with the ten-year Treasury yield at a meager 2.95%, stock performance looks less bad than it would under normal conditions.
U.S. stock indexes slumped, U.S. Treasury bond and note futures prices soared and the U.S. dollar index vacillated but did back down in the wake of the jobs data.
Still 74 percent-owned by the U.S. Treasury, Ally had planned an initial public offering of stock in 2011, but did not pursue it because of a volatile stock market.
Increasing investor risk appetite in the market place, as evidenced by rallying stock indexes and falling U.S. Treasury prices, has worked to pressure the safe-haven precious metals late this week.
The firmer U.S. dollar index and higher U.S. Treasury prices Tuesday, along with weaker U.S. stock indexes, did suggest investor risk appetite pulled back a bit on the day.
Financial shares remained in focus as the U.S. Treasury announced it would auction its warrants for Bank of America stock on Wednesday as it seeks to recoup taxpayer money spent bailing out the nation's big banks.
Companies may either sell their treasury shares (those held by the company) or open market stock.
Treasury will make the financial decision on which institutions will receive the stock purchases.
The major stock indexes in 2011 significantly underperformed U.S. Treasury bonds.
The stronger U.S. dollar index and U.S. Treasury prices Tuesday morning, along with weaker U.S. stock indexes, suggest investor risk appetite has pulled back a bit so far on the day.
The investment giant BlackRock is telling clients to stock up on cash and safe-haven bonds and treasury bonds even though this is not the best strategy in the long run since it provides negative returns when you factor in inflation.
The shares that taxpayers will own will be paid back with "a reasonable return, " the Treasury Department said, adding that taxpayers will also have warrants for common stock, which means an option to buy such shares in the future.
If a government recapitalisation does prove necessary, the treasury is likely to take one of two routes: a preferred-stock investment that allows the agencies to raise more capital of their own, or nationalisation through a common-equity injection that leaves current owners with nothing, and thus offers the taxpayer a better deal.
The Treasury would have authority to take warrants in companies that participate, effectively acquiring stock in them.
It is undeniable that a hypothetical stock buyer of 25 years ago would have beaten an owner of Treasury bonds.
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