Adjustable-rate preferred stock - arps, Portfolio Management

It is a kind of preferred stock where the dividends issued will change with a benchmark, most often a T-bill rate. The price of the dividend from the preferred share is set by a fixed formula to move with rates, and due to this flexibility preferred prices are generally more stable then fixed-rate preferred stocks.

The preferred category of stocks is more secure as they would be one of the first of the equity holders to receive dividend payments in the event of the company's liquidation. There is generally a limit to the amount the rate can vary on the dividend, adding extra security to the issue.

 

Posted Date: 7/27/2012 8:14:36 AM | Location : United States







Related Discussions:- Adjustable-rate preferred stock - arps, Assignment Help, Ask Question on Adjustable-rate preferred stock - arps, Get Answer, Expert's Help, Adjustable-rate preferred stock - arps Discussions

Write discussion on Adjustable-rate preferred stock - arps
Your posts are moderated
Related Questions
I need to analyze this case to answer 4 questions using the spreadsheet provided. Due Date: Sept 14

The management of Nelson plc wish to estimate their firm’s equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it would

WAHAT IS RISK ANALYSIS

b) Mr. Castro uses a 20% hatch system of timing when to invest in a stock market. In a given, the top of a given share was Shs.150/= and its bottom was Shs.90. During the year the

Problem 1: The procurement concept encompasses a wide range of supply activities including all stages of the procurement cycle. Explain briefly these stages. Describe why the

1. Mrs. Mary Atkins, age 66, has been your firm’s client for five years, since the death of her husband, Dr. Charles Atkins. Dr. Atkins had built a successful newspaper business th

baumol model meaning advantages and features?

In the category of multi-class mutual funds, this is the class that is generally characterized by a loaded fee structure. Class A mutual fund units will normally have a front- or r

#questYou have the following limited information upon which to base your decision as to which is the better of two alternative funding arrangements: • Alternative 1 is to arrange f

Having investment in both Proctor and Gamble (PG), and Research in Motion (RIMM) from September 2010 upto now. Write a four-page analysis. To compare their performance to that of t