Thursday, February 7, 2013

Preferred Stock

A corporation can issue two basic kinds of stock, common and preferred. Preferred stock Stock with a priority status over common stockholders in one or more ways, such as paying dividends or distributing assets. has special rights that give it priority (or senior status) over common stock in one or more areas. Special rights typically include a preference for receiving dividends and for the distribution of assets if the corporation is liquidated. Preferred stock carries all rights of common stock unless the corporate charter nullifies them. Most preferred stock, for instance, does not confer the right to vote. Exhibit 13.9 shows that preferred stock is issued by about one-fourth of corporations. All corporations issue common stock.

EXHIBIT 13.9Corporations and Preferred Stock

No comments:

Post a Comment