Equity Characteristics: Rapid Fire

What this video covers

• Why only the board of directors declares dividends and why shareholders cannot demand them
• The T+1 settlement impact on ex-dividend dates, and why buying on the ex-date means zero dividend
• Qualified dividends versus ordinary dividends: holding period, tax rates, and the 60-day rule in the 121-day window
• Why stock dividends are not taxed at receipt and how they lower per-share cost basis without changing total value
• Statutory voting versus cumulative voting: how majority shareholders win every seat under statutory, while minority shareholders can pool votes under cumulative
• Preemptive rights: exclusive to common stock, 30 to 45 day expiry, and the critical distinction that they protect ownership percentage, not stock price
• Cumulative preferred arrearages and why they must clear in full before common stockholders receive any dividend
• Restricted securities versus control securities: the what/who distinction, 6-month holding period for reporting issuers, 12 months for non-reporting, and why affiliates never escape resale limits
• Form 144 versus Form 4 triggers and deadlines: volume or dollar thresholds for 144, two-business-day filing for any insider ownership change on Form 4
• Incentive stock options (ISOs) versus nonqualified stock options (NQSOs): employee-only restriction, $100,000 annual vesting cap, AMT preference item at exercise, and the dual holding rules for capital-gains treatment