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 …
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 …
What is an Operating Lease? An operating lease can be defined as a contract that permits the usage of a particular asset. However, it does not transfer ownership rights to the user of the asset. In other words, the ownership rights remain with the owner of the asset. Operating Leases are mostly for a shorter …
What are Preference Shares? Preference Shares are shares that are issued by the company to the general public, as a token of ownership in the company, against a certain price. In this regard, it can be seen that preference shares entitle the shareholder to a fixed dividend payment. When the company issues shares, there are …
Advantages and Disadvantages of Preference Shares Read More »
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 …
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 …
What is an Import Letter of Credit? When a business conducts international trade, there are numerous different steps and procedures that they need to follow in order to safeguard themselves against possible litigation related charges. In this regard, it is also imperative for organizations to work alongside different banks and financial institutions to ensure that …
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 …
What is a bank guarantee? In the current day and age, it is highly important for organizations to ensure that they carry out transactions that are safer and secure from the perspective of getting suitable and viable returns. As a matter of fact, it is rudimentary for business working on credit to ensure that their …
Bank Guarantee: Feature, Process, Types, Advantages, and Limitation Read More »
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 …
