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
Q. Re-order point - technique of inventory management? Re-order point: - The re-order point is that stock level at which an order should be placed. Mutually the excessive and i

1. Using ratio analysis, compare your fifth year to the current year and discuss. 2. Compute the expected stock price at the end of the fifth year. Assume your stockholders hav

State the Analytical procedures at the planning stage Auditors must apply analytical procedures at the planning stage to help in understanding the entity's business, in identi

Select a publicly traded company (preferably manufacturing oriented; do not use a financial services company such as a bank or a bank holding company) and obtain a copy of their mo

Discuss and compare hedging transaction exposure by using the forward contract vs. money market instruments. While do the alternative hedging approaches generate similar result?

Explain cross-hedging and discuss the factors determining its effectiveness. Answer: Cross-hedging includes hedging a position in one asset by taking a position in another asse

Question: On 1st October 2001 a man then aged 34 took out an endowment assurance policy with a sum assured of $100,000 payable on survival to age 50 or at the end of the year o

Bonds can also be classified into convertible and non-convertible depending upon whether they carry a conversion feature or not. Convertible bonds are the ones which ca

1. List five different types of resource that a company might consider hiring or leasing. Explain why the might choose these option instead of outright purchase 2. List three di

Scenario:  ABC Company sells widgets in three varieties (blue, red, and yellow) but has lost money for the past three years.  Competitive intelligence shows the Company's products