Cumulative Preferred Stock

Definition Cumulative Preferred Stocks are a type of preferred stocks which abides the company to pay all the dividends for this type of shareholders before paying any other shareholder of the company. This means that the company is supposed to pay all the dividends, including the ones that were previously not paid out, to these …

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Cumulative Preferred Stock

Definition Cumulative Preferred Stocks are a type of preferred stocks which abides the company to pay all the dividends for this type of shareholders before paying any other shareholder of the company. This means that the company is supposed to pay all the dividends, including the ones that were previously not paid out, to these …

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Participating Preferred Stock

Definition Participative Preferred Stocks are a sub-category of preferred stocks, which are entitled to their agreed upon dividend yield, and the dividend that is paid out to the common shareholders of the company. This means that the payout for participative preferred stock is higher as compared to other stockholders, primarily because of the fact that …

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Callable Preferred Stocks

Definition of Callable Preferred Stocks Callable Preferred Stock is defined as a type of preferred stock that can be redeemed by the issuer at a given value before the maturity date. Issuers mostly use this type of preferred stock for financing purposes, because it offers them substantial flexibility for redemption. Therefore, it gives the option …

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Convertible Preferred Stock

Definition Convertible Preferred Stocks are considered to be a type of Preferred Stock, which gives the option to the stockholders to convert their stock holding to common stock at a fixed conversion ratio. However, this conversion can only take place after a predetermined date. Regardless of the fact that mostly this transaction takes place upon …

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Retractable Preferred Shares

Definition Retractable Preferred Shares are defined as a share class that has a maturity date. When these shares mature, the issuing company has the discretion to ask the retractable preferred shareholders to convert their shares into cash, or some other form of equity that the company offers. Hence, it is not considered to be a …

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