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Preferred "stock" can be classified as either debt or equity depending on the terms of the securities. If the stock behaves more like as a bond, for example if it is redeemable for a fixed amount on a fixed date (like a bond) or if it is "putable", meaning it can be redeemed by the holder at a fixed price, then it may be more classified ...


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I'm not saying that this doesn't exist but in 20+ years of investing in and trading preferred stocks, as well as buying IPOs of preferred stocks, I have never seen this. OTOH, I have seen and traded many equity IPOs that had one or more warrants attached. Until the warrant(s) becomes detachable, you can only trade the unit as a whole. Once the warrants ...


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The source you cited is likely wrong. Preferred stock would have custom, ad hoc terms regardless. A company could definitely sell preferred stocks with detachable warrants that still gets dividends. Maybe the author of that article is implying it's standard practice to do such a thing, but I don't think so. The value of the preferred stock would be little ...


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Most preferred stocks in the US are issued at $25 and they are callable in 5 years. Preferred stocks are a hybrid of common stock and a bond. Because of the bond like nature (yield), they are affected by interest rates. As rates rise, preferred stocks drop and vice versa. Occasionally you might see a $25 preferred around $30 but that's more the exception ...


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