Preferred StockKnowledge Center |
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Welcome to the Preferred Stock center of 12manage.
Here we exchange knowledge and experiences in the field of Preferred Stock.
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What is Preferred Stock?Preferred Stock is a class of equity that pays dividends at a specified (normally fixed) rate, regardless of corporate earnings, prior to the claim of common stockholders. In the case of bankruptcy / liquidation these stocks normally give its holder a claim on the assets of the company, also prior to the claim of common stockholders. As a result, the associated risk with owning this class of securities is lower than common stock. The major drawbacks of this type of shares are that they normally do not profit from dividend increases of the common stocks, and they normally do not have regular voting rights associated with them. Preferred Stocks can have a number of additional rights attached to them:
Compare with: Convertible Preferred Stock | Liquidation Value | Venture Capitalists | Warrant | Redemption Value |
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