2,851
edits
Changes
Jump to navigation
Jump to search
Line 1:
Line 1: − + +
no edit summary
'''Preferred Shares''' are a hybrid financial instrument having characteristics of both [[equity]] and [[debt]].
{{move|Preferred shares}}
'''Preferred shares''' are a hybrid financial instrument having characteristics of both [[equity]] and [[debt]].
They are like debt, in that they will carry a specify [[dividend]] rate. However, the payment of the dividend is not guaranteed. A company that failed to make a preferred dividend payment would be viewed unfavorably by the market and it is likely all prices of all it's issued shares would fall.
They are like debt, in that they will carry a specify [[dividend]] rate. However, the payment of the dividend is not guaranteed. A company that failed to make a preferred dividend payment would be viewed unfavorably by the market and it is likely all prices of all it's issued shares would fall.