Questions tagged [preferred-stocks]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
1
vote
1answer
54 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 ...
1
vote
1answer
76 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 ...
2
votes
2answers
93 views

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 ...
3
votes
2answers
735 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 ...
4
votes
2answers
499 views

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 ...
2
votes
2answers
245 views

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 ...
4
votes
1answer
776 views

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 ...
0
votes
1answer
459 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....
5
votes
1answer
656 views

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 ...
6
votes
1answer
674 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 ...
1
vote
0answers
254 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 ...
3
votes
1answer
384 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 ...
0
votes
1answer
883 views

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? ...
0
votes
1answer
852 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 ...
4
votes
2answers
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 ...
0
votes
1answer
67 views

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, ...
5
votes
1answer
2k 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 ...
5
votes
4answers
5k 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 ...
6
votes
1answer
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.
29
votes
3answers
992 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?