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Questions tagged [preferred-stocks]

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Redemption of preferred shares from the issuer

Why the issuer has motivation to redeem preferred shares at par value when they would otherwise trade (on the basis of dividends,maturity and required rate of return) above par value ? For me this ...
johnniem's user avatar
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Calculating preferred share conversions to common using weighted average

I am trying to make an informed decision as to whether or not to invest in a private startup company by exercising vested options from a grant I obtained while working for the company as an employee. ...
ThaDon's user avatar
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Why are preferred shares in the Korean market traded at a discount?

According to the answers here, voting rights don't really matter when it comes to the price of shares. Also, I am not sure about the US market, but in the Korean market, a preferred share usually pays ...
Jaeseop Ahn's user avatar
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Why don't preferred stocks have the same holding period as common stocks to be considered as qualified dividends?

I read on https://en.wikipedia.org/wiki/Qualified_dividend: You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. The ex-...
Franck Dernoncourt's user avatar
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Dividend Coverage Ratio and Preferred Stock

I am looking at investing in a few companies which offer preferred stock. Do their dividend coverage ratios factor in the dividends being paid to preferred shareholders? If not, how can I find or ...
pogallen's user avatar
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What is the difference between preferred stock and a perpetuity bond?

I have some problems with understanding a preferred stock and a perpetuity bond. Both have a fixed interest rate and both will never actually repay the notional amount. The only difference, is that ...
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If total assets less total liabilities is positive, how should negative shareholders' equity be interpreted?

For some recently public companies, total assets minus total liabilities is a positive number, but shareholders' equity is negative. In some cases, this appears to be the result of a past sale of ...
SapereAude's user avatar
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What is Preferred Securities Outside Stock Equity?

When reading a company balance sheet, there is a section on Preferred Securities Outside Stock Equity under the Non Current Liabilities section. What is Preferred Securities Outside Stock Equity?
henrywright's user avatar
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Preferred Stocks: Why do you have to sell the detachable warrant to receive dividend?

I'm reading about detachable warrants and it says that: Because they are attached to preferred stock, investors may not be able to receive dividends for as long as they hold the warrants. (https://...
user5646514's user avatar
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1 answer
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Difference in market value between preferred and common stock?

I was reading about the difference between preferred and common stock, and I noticed that the market value of preferred stock doesn’t normally increase the way the value of common stock does. Why is ...
Mark's user avatar
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If I buy a preferred stock before ex.dividend, will I get the dividends from the first time or there is more time should I hold it before getting it?

If I buy a preferred stock before ex.dividend, will I get the dividends from the first time or there is a longer period of time should I hold the preferred shares before getting its dividends?
huab's user avatar
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What do these symbols in preferred shares description mean?

What does this symbols in preferred shares description mean? DEP SHS : Depositary Shares? RP : Redemption Price? NCUM = Non Cumulative PF : preferred? CLBL = Callable PFD: preferred ? Perpetual ? (...
huab's user avatar
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How much should I actually pay for preferred stock, and how much would the company call it back for?

I found a preferred share with a market price of $6, in its prospectus the par value is $25, and it is redeemable/callable with cumulative dividend of 6% annually. If I want to buy it, should I only ...
huab's user avatar
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Is there a difference between class 1/A stocks and a preferred stock?

Is there a difference between class A stocks and a preferred stock? or both are the same?
huab's user avatar
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Do convertible preferred shares increase common equity when converted?

Do convertible preferred shares increase common equity (increase the ratio of common equity to preferred equity) when converted? For example there $4m in shareholders equity and there are 4 shares, 2 ...
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Preferred stocks vs common stocks and Goog vs Googl? [duplicate]

I've read online and in the literature that apparently preferred stocks don't grow as much as common stocks. That makes sense, but Goog and Googl are closely tracking each other. I suppose Goog is ...
JobHunter69's user avatar
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Why did Xiaomi register a loss for issuing preferred stocks?

I read in this article the following: Xiaomi previously registered a 43.9 billion RMB ($6.9 billion) loss in 2017 on account of issuing preferred shares to investors (54 billion RMB) but it did post a ...
habibhassani's user avatar
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Relation between fair market value and preferred price

Continuing on Why is there a significant disparity between 409A valuation and fair market value? Is there a formula for deriving preferred price from FMV? Does it change based on how many rounds the ...
devth's user avatar
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Why do companies issue depositary shares for preferred stock instead of issuing preferred stock directly?

I was looking at the list of US Bancorp preferred stock issues. Among them are: Depositary Shares Each Representing a 1/1,000th Interest in a Share of Series B Non-Cumulative Perpetual Preferred ...
Flux's user avatar
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Do all Canadian preferred stocks for retail investors trade on stock exchanges?

In Canada, do all retail-investor-accessible preferred stocks (i.e. those preferred stocks that can be bought by retail investors) trade on stock exchanges (e.g. on the Toronto Stock Exchange)? Or is ...
Flux's user avatar
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How can a preferred stock be liquidated below its issue price when reports are not filed?

I was reading an article about Income Investment Risks, where "reports might not be filed" was mentioned as one of the risks of investing in fixed-income securities (presumably preferred ...
Flux's user avatar
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What is the "grey market" for preferred stocks?

I heard that new preferred stocks start trading on the "grey market" before they list on stock exchanges. I also heard that preferred stocks trade at a discount on the "grey market"...
Flux's user avatar
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Earnings coverage calculation confusion

I am working my way through security analysis by Benjamin Graham (sixth edition) and have come across some calculations that do not make sense to me. This is the paragraph that precedes the data that ...
Jake O'Neill's user avatar
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Do non-cumulative preferred stocks have to pay dividends?

I am trying to understand preferred stocks. For cumulative preferred stocks, if any preferred dividend payments have been missed, the dividends owed must be paid out to the preferred stockholder first ...
Flux's user avatar
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Washington Gas Light Company serial preferred stock $5.00 series [closed]

Where can I find the historical price of this preferred stock, especially for May 2020.
Timothy Mason's user avatar
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1 answer
105 views

Why do preferred stock limit your reward, if the company expands and increases its profits?

Personal Finance For Canadians For Dummies (2018). p 472 Middle. preferred stock: Preferred stock dividends must be paid before any dividends are paid to the common-stock shareholders. Although ...
user avatar
2 votes
1 answer
223 views

How does a company redeem its preferred stock?

This question follows from: What does it mean for a company to redeem its preferred stock? If I own a preferred stock and the issuer chooses to exercise its right to call, how does the redemption ...
StoneThrow's user avatar
3 votes
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What does it mean for a company to redeem its preferred stock?

What does this excerpt of legalese mean? Commencing on November 4, 2020, we may redeem, at our option, the Series A Preferred Stock, in whole or in part, at a cash redemption price of $25.00 ...
StoneThrow's user avatar
3 votes
2 answers
2k views

Is there a standard ratio of preferred shares to common shares in a company?

I'm confused about how common and preferred shares coexist. Is a single preferred share always equal to the same amount of the company as a single common share, or does a preferred share somehow ...
CodyBugstein's user avatar
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4 votes
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Preferred vs Common Shares in Private Corporation

If preferred shares (with no voting rights and non-cumulative dividends) should be paid dividends before common shareholders, how exactly does the process work? Example: Private company with one ...
Bobi's user avatar
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ETF with seemingly guaranteed return in dividends

I'm new to ETFs and such and am trying to learn as much as possible quickly. I came across this fund today that seems like magic to me: DGS.PR.A (TSE) The fund seems to maintain a $10 value (except ...
Tim Tisdall's user avatar
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1 answer
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Preferred share dividend obligation

As many are aware some common stocks pay dividends, and some don't. The company is under no obligation to pay dividends on common shares, and if a dividend on say, CVX exists one quarter, there's no ...
public wireless's user avatar
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1 answer
1k views

Difference between call and maturity values for preferred stocks

According to this quote from InvestingAnswers, a preferred stock might have a call date and a maturity date. But, if a preferred stock has both, it would seem the issuer is not going to pay out twice....
Schemer's user avatar
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2 answers
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How do I buy Wells Fargo's $1B preferred stock offering?

Wells Fargo is offering $1B in preferred stock yielding 6%. I want to buy this preferred stock but how? Say I open an account at Fidelity. I can't find it in the stock market.
Love's user avatar
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How do Related Hedges work?

I'm currently re-reading Benjamin Graham's book, The Intelligent Investor. In it (Chapter 15), Graham mentions some of the undertakings and operations his fund, Graham-Newman Corporation, was involved ...
Mr. Timnus's user avatar
6 votes
1 answer
1k views

How often are preferred shareholders made whole after a company goes bankrupt?

For instance, companies usually issue preferred shares at $25 and redeem them at the same price if they are ever called away. During that time you are paid interest. If the company goes under, bond ...
Jamie Bush's user avatar
1 vote
0 answers
275 views

Preference shares vs. common shares and overall holding structure for a public company?

I am trying to understand the overall holding picture for a listed company — like, there can be preference shares, common shares (free float), etc. My questions are: It would be really great ...
copenndthagen's user avatar
3 votes
1 answer
549 views

What is "liquidation preference", and what are its terms?

I'm new to reading balance sheets. I'm doing research on a company and noticed on page 5 of their balance sheet a long list of shares issued and outstanding with "liquidation preference $0.0001 per ...
luca590's user avatar
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1 answer
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How does a company raise capital using Preference shares? [duplicate]

What I understood so far from preference shares is, the promotors sell a part of their shares at the current market price to some investment firm as preferential shares. But what good does it do them? ...
user1502178's user avatar
0 votes
1 answer
1k views

What happens to a company when it issues preference shares?

What are preference shares basically? Google tells me its for companies to accept large funding from invests, but I want to know how exactly it works in simple terms. There is this company whose ...
user1502178's user avatar
5 votes
3 answers
2k views

Why would preferred shares have less potential for capital gain compared to common stock?

From the investopedia article on preferred vs. common shares: Preferred shareholders have priority over common stockholders on earnings and assets in the event of liquidation and they have a ...
Victor123's user avatar
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1 answer
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Where can I find definitive terms for a preferred share?

Specifically I'm looking for information regarding SCU, which according to some sources seems to be a preferred share of SCG, but I can't find any information regarding its call date, convertibility, ...
Emirikol's user avatar
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5 votes
1 answer
4k views

How does a preferred share "Annual Concurrent Retraction Privilege" work?

I just received a Corporate Action Notice from my stock broker, saying that the company is offering an Annual Concurrent Retraction Privilege. It gives me three options: Cash (consent to resale of ...
alekop's user avatar
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6 votes
4 answers
7k views

How to find out the amount of preferred stock of Coca Cola Company?

I am having trouble finding out how many shares of preferred stock of Coca Cola Company are there. Is this information public? How to find the value of preferred stock? Is it the same as the value of ...
Petka's user avatar
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6 votes
1 answer
2k views

Where can I buy preferred stocks as opposed to common stocks?

I'd like to purchase some preferred stocks (or at least look into it), but I am not really sure how I could go about doing this. I currently use Scottrade for most of my investing.
foobarfuzzbizz's user avatar
30 votes
3 answers
1k views

What are "preferred" stocks? How are they different from normal (common) stocks?

What are "preferred" stocks? How are they different from normal (common) stocks that you can buy on a stock exchange?
gyurisc's user avatar
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