Preferred stock, Financial Management

Preferred Stock

This is a category of capital stock that will gives its holders preference  over common stockholders in the distribution  of earnings  or rights to the assets of a organization in the event of liquidation. Preferred stock mainly pays an established dividend. For example, a 5 %preferred stock pays a dividend that equals 5 % of the total par value of outstanding shares.  Preferred stocks generally do not have any voting rights. Preferred stock may also carry a variety of features. It may be callable by the organization, dividends may be cumulative, common stock warrants may be attached or it may be convertible to common stock under specific conditions, to mention only a few variations.

Posted Date: 10/16/2012 8:34:09 AM | Location : United States







Related Discussions:- Preferred stock, Assignment Help, Ask Question on Preferred stock, Get Answer, Expert's Help, Preferred stock Discussions

Write discussion on Preferred stock
Your posts are moderated
Related Questions
What is the Scope of IFRS 8 IFRS 8 applies to organisations who: Equity or debt instruments are traded in a public market (stock market) Is in the process of obtai

Q. Explain Dividend Policy Decision? Dividend Policy Decision: - The financial management has to make a decision as to which portion of the profits is to be distributed as divi

Q. Explain Net Present Value Method? Net Present Value (NPV) Method: - This process measures the Present value of returns per rupee invested. In this method present value of

Which type of financing is appropriate to each firm?

Explain why warrants are rarely exercised unless the time to maturity is small? Warrants are hardly ever exercised until the time to expiration is small because the market pric

FINA310-1203B-10 Financial Management Assignment Name: Unit 2 Discussion Board Deliverable Length: 3-5 paragraphs Details: The Discussion Board (DB) is part of the core of online l

We can discount cash flows either by using spot rates or forward rates, because a spot rate is simply a package of short-term forward rates. Assume that the cash

A pharmaceutical company, named "XYZ", plans to deliver trials to three different clinics (C1, C2, and C3). The trials are used for the emergency treatments so XYZ must fulfill all

Types of T-Bills In the US markets, though there are many types of T-bills, they can be broadly classified into two types - regular-series bills and irregular-series bills.

•What categories and in what amounts should Jenny allocate her funds to reflect a balanced monthly budget? Include the main categories as well as examples of other categories.