The following is used with the permission of the original
General Information & Capitalization
At the top of the SSG form is an area to record some
general information about your stock study. This information
is for your own reference, and most of the fields are
In this area, information is recorded
about a company's capital structure. Capitalization is
simply the way a business is financed, including common
and preferred stock, long-term debt and retained earnings.
The figures in this section are not used for any calculations,
but rather serve as "flags" to potential problems.
- The name of the company.
- The date the study was completed.
- Prepared by
- Your name or initials.
- Data taken from
- The source of the data, commonly
StockCentral, Value Line, or Standard & Poor's/NAIC.
- Where traded
- The exchange or service where the stock is traded,
e.g., NYSE, AMEX (ASE), or NASDAQ (OTC).
- Major product/service
- The company's industry group.
- Preferred and Common Stock
- Enter the number of shares
outstanding and the number of shares that the
company is authorized to issue. A company's articles
of incorporation establish the number of shares
the company is authorized to issue, which may
often be much higher than the number of shares
actually outstanding. The company may raise additional
capital by issuing additional shares that have
been authorized, but shareholders must approve
any new issues. These figures can be found in
the company's annual report; Value Line and Standard & Poor's
report only the number of shares outstanding.
- Other Debt
- Record here the Total Debt
of the company you are analyzing. If debt seems
sizable (with reference to the company's own
history or in comparison to others in the same
industry), perhaps a further look at the company's
financial structure is warranted. Standard & Poor's
does not report Total Debt, but only Long-Term
- Potential Dilution
- The most common forms of dilution are unexercised
options (an option to buy a number of shares at
a pre-set price some point in the future, usually
issued to key management) and convertible securities
(usually debentures and preferred stock that can
be exchanged at a later date for common stock).
Enter the number of shares by which the number
of outstanding shares could possibly increase if
these authorized options were exercised and convertible
securities redeemed. Dilution is not favorable
because it "waters down" the
value of the shares held by existing shareholders.
Both Value Line and Standard & Poor's include
potential dilution in the Capitalization section;
no entry means no dilution is likely. As of 1998,
changes in accounting laws require that companies
report "fully-diluted EPS," taking into account
the effects of dilution on the profits. Therefore,
it's not usually necessary to include dilution
here, since it's already been taken in account
in the report of earnings.
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