|
|
|
Definition: Preferred Stock is a class of equity that pays dividends at a specified (normally fixed) rate, regardless of corporate earnings, prior to the claim of common stockholders. In the case of bankruptcy / liquidation these stocks normally give its holder a claim on the assets of the company, also prior to the claim of common stockholders. As a result, the associated risk with owning this class of securities is lower than common stock. |
More on investing: Alternative Investments, Asset Management, Break-even Point, BRIC Countries, Capital Structure, more on investing... You may also like: Full-time MBA, Executive MBA, Executive Education, Online MBA. MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration. We like to keep things short, and provide links to learn more about your subject.
|
© 2024 MBA Brief - Last updated: 2-5-2024 - Privacy | Terms
