Hybrid security a 1 fixed payouts like bonds 2 an

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Unformatted text preview: A. 1. Fixed payouts like bonds 2. An equity investment like common B. Attributes Of Preferred Stock 1. 2. 3. 4. 5. Par value; meaningful in bankruptcy or liquidation Cumulative Features; missed dividends must be made up Participating; in years of high profits, an extra dividend Non-Voting; except as provided in corporate charter Convertibility; typically into common All Rights Reserved Dr. David P Echevarria 5 NEW ISSUES OF STOCK (IPOS) NEW A. Typically below current market prices A. B. Process 1. 2. 3. 4. Developing Prospectus Price the issue Distribute the issue Transaction Costs: Spread, fees C. Shelf Registrations 1. Corporation can plan issues up to two years to Corporation completion completion 2. Permits issuer to time issuance for best price action All Rights Reserved Dr. David P Echevarria 6 SECURITY MARKETS A. Organized Exchanges 1. NYSE, AMEX, Tokyo (TSE), London (LSE), etc 2. Restricted participation, trading rules strictly Restricted specified specified 3. Traders (members) own seats...
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This document was uploaded on 02/11/2014.

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