mark berch

Mark Berch

Income tax
A state or federal government's levy on individuals as personal income tax and on the earnings of corporations as corporate income tax.



Syndicated Eurocredit loans
Funding provided by a group (or syndicate) of banks in the Eurocreditmarket.( - Mark Berch)

Mark Berch: Right
Privilege granted shareholders of a corporation to subscribe to shares of a new issue of common stock before it is offered to the public. Such a right, which normally has a life of two to four weeks, is freely transferable and entitles the holder to buy the new common stock below the public offering price. See: Warrant.

Installment sale
The sale of an asset in exchange for a specified series of payments (the installments).

Perfect market view (of capital structure)
Analysis of a firm'scapital structure decision, which shows the irrelevance of capital structure in a perfect capital market. ( Mark Berch )

Gray knight
In a merger or acquisitions, a gray knight is an acquiringcompany that outbids a white knight in pursuit of its own best interests, although it is friendlier than a hostile bidder.

Mark Berch

Capitalization-Weighted Index
A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index. See also Float, Divisor.

Mark Berch: Stock dividend
Payment of a corporate dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company, or it may be shares in a subsidiary being spun off to shareholders. Stock dividends are often used to conserve cash needed to operate the business. Unlike a cash dividend, stock dividends are not taxed until sold.

Mark Berch: Fee-and-commission compensation
See: Fee-based compensation