COST OF EQUITY Definition

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COST OF EQUITY (COE) is the minimum rate of return a firm must offer owners to compensate for waiting for their returns, and for bearing risk. It is calculated: COE = Dividends per Share (for next year) / Current Market Value of Stock + Growth Rate of Dividends.

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MINIMUM QUOTE SIZE REQUIREMENT, NASD Rule 6650, is the minimum size at which a market maker is permitted to display bid or offers in the BBX. The minimum size required depends on the price of the stock. For example, all quotes on the OTCBB priced under $0.50 have a minimum quote size of 5,000 shares.

GROSS DOMESTIC PRODUCT (GDP) is the value of all the goods and services produced by workers and capital located within a country (or region), such as the United States, regardless of nationality of workers or ownership. Domestic measures relate to the physical location of the factors of production; they refer to production attributable to all labor and property located in a country. The national measures differ from the domestic measures by the net inflow -- that is, inflow less outflow -- of labor and property incomes from abroad. Gross Domestic Product includes production within national borders regardless of whether the labor and property inputs are domestically or foreign owned.

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