What is the definition of a Preferred Stock?
- Posted on November 20, 2019
- Financial Terms
- By admin admin
Preferred stock is a form of equity issued by a company. It its preferred because it takes priority over common stocks in that it has a higher-priority claim on assets in the event of bankruptcy and will be paid dividends before any common stockholders receive dividends. However, holders of preferred stock will not have any voting rights in the company.
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