Management Notes

Reference Notes for Management

Preferred Stock Advantages – 6 Major Advantages | Financial Management

Preferred Stock Advantages

What is Preferred Stock?

Preferred Stock which is also called preference share is a hybrid security with features of both debt and common stock which entitles the holder to pay a fixed dividend.Preferred shares generally have a dividend that must be paid out before dividends to common shareholders, and the shares usually do not carry voting rights.From the firm’s viewpoint the major advantages ofthis financing are as follows:

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