What is preferred stock? Why is preferred stock considered a hybrid security? When should a company fund with preferred stock instead of common stock or debt? Why?© BrainMass Inc. brainmass.com March 4, 2021, 7:48 pm ad1c9bdddf
What is preferred stock?
It is a type of Capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. Like common stock, preferred stocks represent partial ownership in a company, although preferred stock shareholders do not enjoy any of the voting rights of common stockholders. Also unlike common stock, a preferred stock pays a fixed dividend that does not fluctuate, although the company ...
What is preferred stock is determined. The expert determines why preferred stock considered a hybrid security. When should a company fund with preferred stock instead of common stock or debt? Why?