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Questions tagged [preferred-stocks]

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1 vote
1 answer
59 views

Redemption of preferred shares from the issuer

Why the issuer has motivation to redeem preferred shares at par value when they would otherwise trade (on the basis of dividends,maturity and required rate of return) above par value ? For me this ...
johnniem's user avatar
1 vote
0 answers
45 views

Calculating preferred share conversions to common using weighted average

I am trying to make an informed decision as to whether or not to invest in a private startup company by exercising vested options from a grant I obtained while working for the company as an employee. ...
ThaDon's user avatar
  • 111
2 votes
2 answers
172 views

Why are preferred shares in the Korean market traded at a discount?

According to the answers here, voting rights don't really matter when it comes to the price of shares. Also, I am not sure about the US market, but in the Korean market, a preferred share usually pays ...
Jaeseop Ahn's user avatar
1 vote
0 answers
58 views

Why don't preferred stocks have the same holding period as common stocks to be considered as qualified dividends?

I read on https://en.wikipedia.org/wiki/Qualified_dividend: You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. The ex-...
Franck Dernoncourt's user avatar
1 vote
1 answer
46 views

Dividend Coverage Ratio and Preferred Stock

I am looking at investing in a few companies which offer preferred stock. Do their dividend coverage ratios factor in the dividends being paid to preferred shareholders? If not, how can I find or ...
pogallen's user avatar
2 votes
1 answer
116 views

What is the difference between preferred stock and a perpetuity bond?

I have some problems with understanding a preferred stock and a perpetuity bond. Both have a fixed interest rate and both will never actually repay the notional amount. The only difference, is that ...
Snowflake's user avatar
  • 133
2 votes
3 answers
244 views

If total assets less total liabilities is positive, how should negative shareholders' equity be interpreted?

For some recently public companies, total assets minus total liabilities is a positive number, but shareholders' equity is negative. In some cases, this appears to be the result of a past sale of ...
SapereAude's user avatar
0 votes
1 answer
206 views

What is Preferred Securities Outside Stock Equity?

When reading a company balance sheet, there is a section on Preferred Securities Outside Stock Equity under the Non Current Liabilities section. What is Preferred Securities Outside Stock Equity?
henrywright's user avatar
1 vote
2 answers
144 views

Preferred Stocks: Why do you have to sell the detachable warrant to receive dividend?

I'm reading about detachable warrants and it says that: Because they are attached to preferred stock, investors may not be able to receive dividends for as long as they hold the warrants. (https://...
user5646514's user avatar
1 vote
1 answer
99 views

Difference in market value between preferred and common stock?

I was reading about the difference between preferred and common stock, and I noticed that the market value of preferred stock doesn’t normally increase the way the value of common stock does. Why is ...
Mark's user avatar
  • 11
7 votes
2 answers
2k views

If I buy a preferred stock before ex.dividend, will I get the dividends from the first time or there is more time should I hold it before getting it?

If I buy a preferred stock before ex.dividend, will I get the dividends from the first time or there is a longer period of time should I hold the preferred shares before getting its dividends?
huab's user avatar
  • 927
1 vote
1 answer
212 views

What do these symbols in preferred shares description mean?

What does this symbols in preferred shares description mean? DEP SHS : Depositary Shares? RP : Redemption Price? NCUM = Non Cumulative PF : preferred? CLBL = Callable PFD: preferred ? Perpetual ? (...
huab's user avatar
  • 927
2 votes
2 answers
227 views

How much should I actually pay for preferred stock, and how much would the company call it back for?

I found a preferred share with a market price of $6, in its prospectus the par value is $25, and it is redeemable/callable with cumulative dividend of 6% annually. If I want to buy it, should I only ...
huab's user avatar
  • 927
1 vote
2 answers
108 views

Is there a difference between class 1/A stocks and a preferred stock?

Is there a difference between class A stocks and a preferred stock? or both are the same?
huab's user avatar
  • 927
3 votes
1 answer
94 views

Do convertible preferred shares increase common equity when converted?

Do convertible preferred shares increase common equity (increase the ratio of common equity to preferred equity) when converted? For example there $4m in shareholders equity and there are 4 shares, 2 ...
piny88's user avatar
  • 59

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