| Par Value Compared to Market Value: Par value is
an arbitrary dollar value assigned to each share of stock. This value
is set by the company at the time the stock is originally issued.
Market value is the current trading price of the stock, and is established
in the market place by purchases and sales on the major stock exchanges.
Preferred Stock Compared to Common Stock: Preferred
stock has priority over common stock in the distribution of dividends
and upon liquidation or dissolution of a company. Most of Pacific
Gas and Electric Company's preferred stock is redeemable at the
company's option (but not by the shareholder), which means that
the company can buy it back from the shareholder at a specified
amount listed in Pacific Gas and Electric Company's Restated
Articles
of Incorporation.
Stock Exchange Symbol: Because of the large number
of companies with publicly traded stock, abbreviated listings are
used both on
the stock exchanges, where PG&E Corporation common stock is
listed as PCG, and in financial papers, where PG&E Corporation
common stock is listed as PG&E or PG&E Corporation (local
newspapers symbols may vary). Stocks, such as ours, that are traded
on more than one exchange are known as "multiple listings"
and the price of the stock is normally the same on these exchanges.
Shareholders of Record: Shareholders of record
hold shares in their own names (rather than having their broker
hold them in "street name," as discussed below). Mellon
Investor Services  maintains
an account for each shareholder of record,
and sends all dividend payments, tax information, annual reports,
and proxy materials directly to the address for that account.
Street Name: When investors purchase securities
and the securities are held for them by a broker, the securities
are listed
in the broker's name, or "street name." We do not know
the identity of individual shareholders who hold their securities
in this manner. We simply know that a broker holds a certain number
of shares, which may be for any number of customers. Shareholders
who hold their stock in street name are not eligible to participate
in the Investor Services Program. They receive
all dividend payments, tax information, annual reports, and proxy
materials through their brokers.
Transfer Agent: The Transfer Agent is the person
or organization responsible for transferring securities from one
owner to another and for maintaining a company's official records
of stock and bond owners.
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