0
What is preferred stock and why is the US Government buying it as part of the bailout plan?
Pickleshy
Unlike common stock, preferred stock can be converted to bonds at the discretion of the owner. The government, by buying preferred stock, gets the rapid growth of stock with the safety of bonds. If there is any money left over after bankruptcy, bond holders are paid first. If there is any money left, after that, common stockholders are paid.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Which is a characteristic of the cost of preferred stock?
Preferred stock is valued as a perpetuity
The cost of preferred stock is equal to?
the preferred stock dividend divided by market price
Which type of stocks have the lowest risk to shareholders?
There are two types of stock: preferred stock and common stock. Preferred stock has the lowest risk to shareholders.
What most accurately describes the difference between common stock and preferred stock?
Preferred stock pays out earnings at fixed, regular dividends
What is callable preferred stock?
Preferred stock may be "callable." At the option of the corporation, callable preferred stock may be surrendered to the corporation, usually at a price a little above par value (or a stated value).
Which is a characteristic of the cost of preferred stock?
Preferred stock is valued as a perpetuity
How many times has AIG been bailed out?
The government wants to intervene again for AIG's bailout... if they do so, it will be the 4th time the government has bailed out AIG. I hope their stock goes back up... as of 3/5 the stock is only 35 cents!!!!! That's sad!
Describe what a preferred stock is.?
A preferred stock is a stock where a public traded company or industry owns most of the stock. Preferred stocks have a claim on capital in the event of complete liquidation.
How would you define convertible stock?
Sometimes preferred stock is "convertible." Shareholders who own convertible preferred stock may, at a price announced when the stock is purchased, turn in their preferred stock and receive common stock in its place.
The owners of an have a voice in how the corporation is operated?
preferred stockIt is common stock not preferred stock
The cost of preferred stock is equal to?
the preferred stock dividend divided by market price
Will an increase in inflation have a larger impact on the price of a bond or preferred stock?
The preferred stock
What describes the difference between common stock and preferred stock?
Preferred stock pays out earnings at fixed, regular dividends
Which type of stocks have the lowest risk to shareholders?
There are two types of stock: preferred stock and common stock. Preferred stock has the lowest risk to shareholders.
How do you calculate the cost of preferred stock?
stock turnover rate is calculated as: =cost of good sold/average stock
What accurately describes the difference between common stock and preferred stock?
Preferred stock pays out earnings at fixed, regular dividends
What is a right associated with preferred stock?
Preferred stock is usually a dividend that is paid out before the dividends to common stockholders is paid.Usually,the holder of preferred stock has no voting rights within the company.
