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


preferred stock

References in periodicals archive ?
The dividends on the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series I Preferred Stock, Series J Preferred Stock, Series K Preferred Stock and Series L Preferred Stock will be paid on November 10, 2014 to preferred shareholders of record on October 26, 2014.
The Taxpayer Relief Act of 1997 amended sections 351, 354, 355, 356 and 1036 of the Internal Revenue Code to, in general, treat certain preferred stock as "property other than stock" for purposes of the specified sections.
354, 355 and 356 with the treatment of rights to acquire "nonqualified preferred stock.
In addition, it appears the transferor could have avoided having the common stock included in his estate by subsequently transferring the retained preferred stock or eliminating other rights prior to death.
25% Redeemable Cumulative Convertible Perpetual Preferred stock, Series C (the "Series C Preferred Stock"), payable February 15, 2007, to shareholders of record at the close of business on February 5, 2007.
Equitable will exchange common stock for the Series A Convertible Preferred Stock currently owned by AXA.
Dividends on convertible preferred stock are taken into account to determine income that's applicable to common stock.
Pursuant to the tender offer, the company will first purchase shares of preferred stock from all holders of "odd lots" of less than 100 shares who properly tendered all of their shares before the expiration date.
Holders of Series F Preferred Stock may (upon surrender of their stock certificates to First Interstate Bank of California, together with all required documentation) convert any or all of their shares of Series F Preferred Stock into Common Stock at the conversion price of $24.
From the Redemption Date forward, dividends on the redeemed Preferred Stock will no longer accrue, and holders of the redeemed Preferred Stock will have no rights other than the right to receive the Redemption Price, without interest, upon surrender of the redeemed Preferred Stock.
In Fitch's view, many of the most common hybrid capital instruments replicate features of preferred stock.
As a condition to the closing of the Preferred Stock Transaction, Viking has completed a conversion of certain outstanding Convertible Notes in the aggregate principal amount of $4,750,000.

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