Explain at least two common preferences and conditions associated with Preferred Stock Agreements.

Explain at least two common preferences and conditions associated with Preferred Stock

Agreements.

Expert Solution

The dividend related to the preference shares are paid first Before any dividend Sako To the common shareholders. The dividend May accumulate in case of cumulative preference shares. Dividend paid only when the company has a profit and in case of non cumulative shares the dividend lapses.

In the event of bankruptcy and liquidation preference shareholders get a preference on the company's assets as compared to the common shareholders. When the company liquidates the preference shareholders are paid first and then the balance is distributed between the common shareholders.

jeff jeffy answered 1 year ago

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Question

Explain at least two common preferences and conditions associated with Preferred Stock Agreements.

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