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33
What are the other four types of Preferred Stock?
Participating vs. Nonparticipating
Part- dividends may exceed a stated amt. once common stockholders receive a dividend equal to the preferred state rate
Non- dividends limited to a max amt. each year. The max is usually the stated div. rate. (Most Pref. Stock is Nonparticipating)
Convertible
-right to be converted to fixed number of common shares
Callable
-issuing company can purchase or retire stock a specified future prices
Part- dividends may exceed a stated amt. once common stockholders receive a dividend equal to the preferred state rate
Non- dividends limited to a max amt. each year. The max is usually the stated div. rate. (Most Pref. Stock is Nonparticipating)
Convertible
-right to be converted to fixed number of common shares
Callable
-issuing company can purchase or retire stock a specified future prices
Flashcard info:
Author: savhighsmith
Main topic: Accounting
Topic: General
School / Univ.: UGA
City: Athens
Published: 01.05.2010