Charles C. Mihalek, PSC

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Definitions for Investors

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Preferred Stock 

   An equity security that represents ownership in a corporation. It is issued with a stated dividend, which must be paid before dividends are paid to holders of common stock. It generally carries no voting rights.

Price-Earnings (PE) Ratio 
   A tool for comparing the prices of different common stocks by assessing how much the market is willing to pay for a share of each corporation’s earnings. It is calculated by dividing the current market price of a stock by the earnings per share.

Private Placement 
   An offering of new issue securities that complies with Regulation D of the Securities Act of 1933. According to Regulation D, a security generally is not required to be registered with the SEC if it is offered to no more than 35 non-accredited investors or to an unlimited number of accredited investors.