preferred stock
Dividend-first equity
Preferred stock is a class of corporate ownership that sits between common stock and bonds, giving shareholders priority over common stockholders when dividends are paid or assets are distributed in bankruptcy.
Unlike common stock, preferred shares typically pay fixed dividends and rarely carry voting rights.
The trade-off is stability over growth potential: preferred stockholders get paid first but usually don't benefit from rising share prices.
The company issued preferred stock to raise capital without diluting voting control.
Increasing by successive additions
- callableSubject to early redemption
- convertibleCar with folding roof
- redeemableAble to be reclaimed
- participatingTaking an active role
perpetual · par value · adjustable-rate · series · tranches · fixed-rate
Equity owner in corporation
- stockholderOwner of company shares
- ownership interestShare in an asset
- balance sheetAssets-liabilities-equity report
- outstanding sharesStock held outside treasury
Tradeable financial assets
- portfolioCollected works or assets
- institutional investorsOrganizations investing pooled funds
- blue-chipFinancially stable and reputable
- asset allocationDistributing investments strategically
diversification · brokerage · exchange · fixed income · credit rating · income stream · capital preservation
Overdue financial obligations
- arrearageAccumulated overdue debt
- yieldProduce or relinquish
- payoutMoney distributed to recipient
- distributionAllocation across recipients
Rank from length of service
- preferential treatmentAdvantages given selectively
- rankingOrdered position assignment
cumulative
Increasing by successive additions
- callableSubject to early redemption
- convertibleCar with folding roof
- redeemableAble to be reclaimed
participating · perpetual · par value · adjustable-rate · series · tranches · fixed-rate
shareholder
Equity owner in corporation
- stockholderOwner of company shares
- ownership interestShare in an asset
- balance sheetAssets-liabilities-equity report
securities
Tradeable financial assets
- portfolioCollected works or assets
- institutional investorsOrganizations investing pooled funds
- blue-chipFinancially stable and reputable
asset allocation · diversification · brokerage · exchange · fixed income · credit rating · income stream · capital preservation
arrears
Overdue financial obligations
seniority
Rank from length of service
- preferential treatmentAdvantages given selectively
- rankingOrdered position assignment
- assetsproperty, cash, money, investments, bank accounts
- accounting termsassets, cash, expenses, equity, retained earnings
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- investmentsbonds, stocks, securities, investment, equities
- securitiessecurities, shares, equities, bonds, stocks
- stock marketshares, stocks, trading, trader, broker
stock, prefer, preference, preferred, prefers, preferences, preferring