Stock

What is a Participating Preferred Stock? Definition, Feature, And How Does It Work?

Definition: Participative Preferred Stocks are a sub-category of preferred stocks, entitled to their agreed-upon dividend yield, and the dividend paid out to the company’s common shareholders. This means that the payout for participative preferred stock is higher than other stockholders, primarily because they are entitled to two different dividends. The additional dividend that they receive …

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What are Callable Preferred Stocks? Definition, Feature, How Does It Work?

Definition: Callable Preferred Stock is a type of preferred stock that the issuer can redeem at a given value before the maturity date. Issuers mostly use this preferred stock for financing purposes, because it offers them substantial flexibility for redemption. Therefore, it gives the option to the issuer to repurchase the shares back from the …

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What are Retractable Preferred Shares? Definition, And How Does it Work?

Definition Retractable Preferred Shares are a share class with 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 a permanent investment and gives the …

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