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
Nelson plc company estimation of beta.

You are going to develop two multi-asset portfolios from the stocks you chose.  Place the information for these steps in the "Portfolios" worksheet. Step 1) The first portfolio

Por tfolio A portfolio is a combination of various privacies or assets. A portfolio may consist of combinations of stocks, bonds, real estate, or any other asset held by a

WAHAT IS RISK ANALYSIS

erd with entity tables and dfd

Accelerated Share Repurchase is a specific method through which corporations can again purchase outstanding shares of their stock. The accelerated share repurchase (ASR) is general

Choose any five securities at random and determine the average returns for each company for the 132 months along with the variance and standard deviation of these returns. Next con

Quels sont les objectifs de Hewllet Foundation comme fondation? 2. Expliquez et discutez les décisions financières que Hewllet Foundation songent à considérer. Spécifiquement, disc


explain phases of portfolio management?