preferred stock


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Related to preferred stock: Convertible preferred stock

Preferred stock

A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common stockholders, on earnings and also generally on assets in the event of liquidation. Most preferred stock pays a fixed dividend that is paid prior to the common stock dividend, stated in a dollar amount or as a percentage of par value. This stock does not usually carry voting rights. Preferred stock has characteristics of both common stock and debt.

Preferred Stock

Stock in a publicly-traded company without voting rights, but otherwise with more rights than common shares. Preferred stocks receive dividends before common shares and sometimes have guaranteed dividends, while common shares only receive the leftovers. Preferred stocks also have a prior claim on capital in the event of liquidation; if the company is liquidated, all preferred shareholders must be paid off before a single common shareholder. Some preferred stocks are convertible, which means they can be changed into common shares at a certain ratio so that even preferred shareholders without voting rights have the possibility of gaining them. Preferred stocks tend not to appreciate as fast as common stocks.

preferred stock

A security that shows ownership in a corporation and that gives the holder a claim prior to the claim of common stockholders on earnings and also generally on assets in the event of liquidation. Most preferred stock issues pay a fixed dividend set at the time of issuance, stated in a dollar amount or as a percentage of par value. Because no maturity date is stipulated, these securities are priced on dividend yield and trade much like long-term corporate bonds. As a general rule, preferred stock has limited appeal for individual investors. See also auction-rate preferred stock, callable preferred stock, cumulative, floating-rate preferred stock, Monthly Income Preferred Securities, new money preferred, participating, preferred dividend coverage, prior preferred, remarketed preferred stock, second preferred.

Preferred stock.

Some corporations issue preferred as well as common stock.

Preferred stock can be an attractive investment because it typically pays a fixed dividend on a regular schedule. The share prices also tend to be less volatile than the prices of common stock.

In fact, preferred stock prices tend to move with changing interest rates in the same way that bond prices do. That's one reason this type of stock is sometimes described as a hybrid investment because it shares some characteristics with common stock and some with fixed-income securities.

What preferred stock doesn't generally offer is the right to vote on corporate matters or the opportunity to share in the corporation's potential for increased profits in the form of increased share prices and dividend payments.

Convertible preferred shares can be exchanged for a specific number of common shares of the issuing company at an agreed-upon price. The process is similar to the way that a convertible bond can be exchanged for common stock.

preferred stock

see PREFERENCE SHARE.

preferred stock

see PREFERENCE SHARE.
References in periodicals archive ?
* Study legislation to target abusive freeze transactions such as manipulation of investment instruments, lapsing rights, unrealistic buy-sell agreements and valuation of preferred stock upon a subsequent gift of the preferred stock, or death of the preferred stockholder, inconsistent with the valuation of the preferred stock at the time of the freeze.
- USD2,250.00 per share on the series D preferred stock (equivalent to USD22.5000 per depositary share, each representing a 1/100th interest in a share of the series D preferred stock); and
$371.88 per share of 5.95% Non-Cumulative Preferred Stock, Series I;
The dividends for the above preferred stock will be paid on 15 April 2019 to stockholders of record date at the close of business on 29 March 2019.
-A dividend of USD 325.000 per share on BB&T's Series G Non-Cumulative Perpetual Preferred Stock (NYSE: BBT PrG)
In the same vein, a Treasury explanation of the new provision stated "tax-free treatment in a reorganization or section 351 transaction is inappropriate for preferred stock that has an enhanced likelihood of recovery of principal or of maintaining a dividend, or both, or that otherwise has certain nonstock characteristics" (Department of the Treasury, General Explanation of the Administration Revenue Proposals Contained in the Revenue Reconciliation Bill of 1996 (March 1996), p.
Dividends on convertible preferred stock are taken into account to determine income that's applicable to common stock.
First Republic Bank (NYSE: FRC), a private bank and wealth management company, has announced that it has declared cash dividends on the following outstanding series of its perpetual preferred stock, the company said.
SANTA MONICA, Calif: Anworth Mortgage Asset Corporation's board of directors declared a Series A Preferred Stock dividend of $0.539063 per share for the third quarter of 2018 in accordance with the terms of Anworth's 8.625% Series A Cumulative Preferred Stock.
The dividend on the Series A Preferred Stock is payable on May 31, 2017 to holders of record at the close of business on May 22, 2017.
BANKING AND CREDIT NEWS-September 3, 2018--First Republic Bank declares preferred stock dividends

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