| Q: What is ADR? |
| A: ADR
stands for American Depositary Receipt. It is a negotiable
certificate representing share(s) of foreign stocks
traded on US exchange. It can be bought just like
you would with shares of US company, and it is issued
by U.S. financial institution. One of the major difference
is that 1 AD share does not always mean 1 share of
the company, and the ratio differs depending on individual
company. |
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|
| Q: What is DPP? |
| A: DPP
stands for Direct Purchase Plan (it is also called
Direct Stock Purchase Plan (DSPP)). This service allows
an investor to purchase shares of a company directly
from a transfer agent, thus eliminating a need to
buy shares through a broker. |
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|
| Q: What is DRIP? |
| A: DRIP
stands for Dividend Reinvestment Plan (it is also
referred as DRP). This service allows existing shareholders
to reinvest their dividend into additional shares
of the company. |
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|
| Q: What is IPO? |
| A: IPO
stands for Initial Public Offering, and it is the
first offering of shares of a company to the public.
New or private company, as well as a company that
is being spun-off from its parent company, can become
publicly traded company by going through the IPO process. |
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|
| Q: What is scripophily? |
| A: Scripophily
is a hobby of collecting stock certificates and bonds. |
|
|
| Q: What is Transfer
Agent? |
| A: Transfer
Agent is a company that is assigned by a publicly
traded company to handle the transactions and record
keeping of their shareholders. |
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