Preferred Stock - What is the preferred? Preferred stock is relative to the purposes of common stock. Mainly refers to the profit-sharing and the distribution of the remaining property, rights, take precedence over common stock. Preferred stock, there are two rights: a. the allocation of profits in the company, the stockholders have priority over common stock held by shareholders, the allocation of prior, and enjoy a fixed amount of dividends, that is, preferred stock dividend rate is fixed, common stock dividend is not fixed , depending on the company's profit the case may be, Lee lot of points, a bit sub-profit, non-profit, regardless, is not capped at the end of the next can not be maintained. b. In the dissolution of the company, distribution of surplus property, the preferred stock before the distribution of the common stock.
Preferred stock - preferred shares the main features of 1, preference is usually given out in advance dividend yield. As the preferred stock dividend rate fixed in advance, so preferred stock dividends generally will not increase or decrease the operating conditions according to the company, but generally can not participate in the company's dividend, but the preferred stock can first receive dividends on the common stock of the company, since dividend is fixed, it does not affect the company's profit distribution.
2, preferred a small range of rights. Preferred stockholders generally do not have the right to vote and stand for election, shares of the company's major business of the non-voting, but in some cases the right to vote.
3, if the shareholders of the General Assembly need to be discussed with the preferred stock-related claims, namely, a claim before preferred ordinary shares, while the second to the creditor.
Preferred stock - preferred types 1, the cumulative preferred stock and non-cumulative preference shares Cumulative index of all is to give priority to the past business year for the payment of accumulated dividends, profits from the business year after payment of preferred stock, together. Non-cumulative preferred stock dividends is based on profit of that year, the cumulative dividend not paid in full down payment of preferred stock will not fill.
2, to participate in the allocation of preferred stock, and not to participate in the allocation of preferred stock To participate in the allocation of preferred stock is required not only to share the kind of year fixed dividend, but also have the right to join ordinary shareholders the distribution of preferred stock company profits. Not to participate in the allocation of preferred stock is the dividend yield only the required points to take dividends, not to participate in the allocation of preferred stock company profits.
3, convertible preferred stock and non-convertible preferred stock Convertible preferred stock authorized in order to support under certain conditions, the preferred stock converted into common shares of preferred stock or corporate bonds. Non-convertible preferred stock is not converted into common shares of preferred stock or corporate bonds.
4, redeemable preferred stock and non-redeemable preference shares Redeemable preferred stock issue refers to the company can recover a certain price of preferred stock. Can not redeem the preferred stock issuer is not entitled to from the hands of the stock holders of the preferred stock redemption.
5, dividends can not be transposed exchange preferred stock and preferred stock dividends Preferred stock dividends is the dividend rate swap can be adjusted for preferred stock. Preferred stock dividend is the dividend yield can not be transposed can not be adjusted.
Preferred stock - preferred shares of the three ways to recover 1, when the redeemable preference shares, the company, although according to a predetermined price, but often cause inconvenience to investors, so distributors often preferred on the face value plus a "premium."
2, the company issued preferred stock, the money received from the portion of the funds raised in the creation of "sinking fund" dedicated to on a regular basis as part of redemption of preferred shares have been issued.
3, conversion methods, namely, the provisions of preferred stock may be converted into common stock. While the convertible preference shares in itself constitutes a type of preferred stock, but the foreign investment community, they often see it as a kind of de facto preferred way to recover, only to recover the initiative of such investors in the company instead of where, for investors, an increase in the price of ordinary shares to do so when it is very beneficial.
