Like a bond, a straight preferred issuance does not participate in any future earnings or dividend growth of the company. Preferred shareholders do not participate in growth of the share price of the company’s common stock.
Almost all preferred shares have a negotiated fixed dividend amount. The dividend is usually specified as a percentage of the par value or fixed amount. Sometimes dividends on preferred stock may be negotiated as floating and it may change according to a pre-determined base interest rate such as LIBOR. For the latest updates PRESS CTR + D or visit Stock Market news Today
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