Penn State University - Smeal College of Business
PSU search
Student Exchange Smeal site map Contact us Accounting faculty directory

Steven Huddart picture
 
Should I exercise my stock options?
 
 
Research
 
Case Studies
 
Courses
 
 
Stock compensation glossary
 
Compensation links
 
Securities law links
 
Tax links
 
 
Office hours and location
 
Facts About The School
 
Home | Previous | Next | Huddart Site Map

Preferred stock


Capital stock which provides a specified Dividend to be paid before any dividends are paid to Common stock holders. The dividend may be omitted in some circumstances, such as when the company has insufficient income to pay the dividend. In a liquidation, the claims of preferred stockholders take precedence over the claims of common stock holders. Like common stock, preferred stock represent an ownership interest in a corporation, but preferred stockholders do not enjoy the voting rights of common stockholders. In the event of bankruptcy or liquidation, the preferred stockholders' interest in the company's assets is senior to that of the common shareholders.


Steven Huddart
Smeal College of Business, Penn State University, University Park, PA 16802-3603 USA
(814) 863-0048
huddart@psu.edu
vCard
Home | Previous | Next | Huddart Site Map

http://personal.psu.edu/sjh11/OptionGlossary/PreferredStock.shtml
was last updated on Tue, Aug 21, 2018.
Today is Tue, Sep 17, 2019.

Unless otherwise noted, all material is:
Copyright ©1995-2018 Steven Huddart. All rights reserved.