Stock - I would like to be taken care of first with all my...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Running head: STOCK 1 Stock Jamel Lee XACC/291 4/3/2016 Marjorie Levy
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
STOCK 2 Stock According to chapter 11 of our reading, preferred stock has provisions that gives some preference or priority over common stock. Although they do not receive voting rights, they are first to be distributed dividends in the event of liquidation. Preferred stock holders are given a cumulative dividend feature. With this they are entitle to be paid both current year and unpaid prior years of dividends before dividends can be given to a common stock holder. To sum it up, if preferred stock dividends are in debt, common stock holders will not be paid. There are liquidation preference of preferred stock which mean that if an organization fails, the preferred stock holder will get paid will corporate assets as a mean of security before common stock holders would. If I had to choose between preferred stock and common stock to invest my money into, I would have to choose preferred stock even though there would be no voting rights.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: I would like to be taken care of first with all my profits just in case the company fails. When you think of preferred stock, you should see it as the quote “First come, First serve”. I would have a little more faith in my investment if I have preferred stock because of the safety measures that are put in place to protect me. For example, if the company don’t have the funds to pay dividends or come to liquidation to all of the stock holders, I would be more feel better knowing that I have a chance of getting paid. STOCK 3 Reference BRATTON, W. W., & WACHTER, M. L. (2013). A THEORY OF PREFERRED STOCK. University Of Pennsylvania Law Review , 161 (7), 1815-1906. METAL 2014 - 23rd International Conference on Metallurgy and Materials, Conference Proceedings 2014, Pages 1908-1913 23rd International Conference on Metallurgy and Materials, METAL 2014; Hotel Voronez IBrno; Czech Republic; 21 May 2014 through 23 May 2014; Code 110980...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern