Equity Characteristics: Rapid Fire
Chapters in this video
- 0:00 Cumulative voting versus straight voting
- 1:57 Restricted stock holding periods: 6 and 12 months
- 3:01 Affiliate volume limit and Form 144 filing trigger
- 4:19 QIB safe harbor and $100 million threshold
- 4:30 Dividend dates: DERP sequence and T+1 settlement
- 5:38 Qualified dividend 60-day holding rule
- 6:11 ISO versus NQSO tax treatment and AMT trap
- 7:45 Rapid-fire exam recap
What this video covers
- How cumulative voting lets minority shareholders stack all votes on one candidate, and why straight voting always rewards the majority
- Why preemptive (antidilution) rights must be written into the corporate charter to protect proportional ownership
- The restricted-stock holding periods: 6 months for reporting issuers, 12 months for non-reporting issuers, starting when fully paid for
- Why the affiliate volume limit is the greater of 1% of outstanding shares or the average weekly trading volume over the prior 4 weeks
- What Form 144 really does: a filing trigger at more than 5,000 shares or more than $50,000 in any rolling 3-month period, not a sales ceiling
- How T+1 settlement collapsed the ex-dividend date onto the record date, and why the DERP sequence still matters
- Why ISOs have zero regular income tax at exercise but the spread is an Alternative Minimum Tax (AMT) preference item, and the 2-year-from-grant plus 1-year-from-exercise holding rules
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