Preferred Stock at Business Glossary
What is it? 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, unless it is convertible into common. The stock shares characteristics of both common stock and debt.Business Dictionary Term Definition Added By: Jason
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