answersLogoWhite

0


Best Answer

preferred stock holders will be the "prefered" holders when/if it came to liquidation. They would be the first to receive whatever values they could be paid in favor of the common stock holders. After the prefered holders have been paid however many pennys on a dollar on their stocks, the common holders would then receive there returns. Usually there is NONE left.......

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why might some stockholders be included to buy preferred stock rather than common stock?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is a sentence with the word preferred?

He always preferred Pepsi over Coke.It is preferred that you dress smartly.


What is the difference between common stock and preferred stock and which is better?

A preferred share usually entitles the holder to a dividend of a specified percentage. A preferred share's dividend is paid before any dividend is paid to the holders of the common shares. People who are looking for income, rather than growth, generally tend to purchase preferred shares instead of common shares (assuming they invest at all in shares). The return on investment is usually a little higher than ordinary interest-bearing paper. But there is also a corresponding risk. A common share gives the holder an opportunity for a capital gain if the company grows and prospers. Dividends are not always paid to common shareholders. Whether preferred is better than common (or vice versa) depends on your investment strategies and how much risk you are willing to take. The foregoing is provided for informational and educational purposes only. It is not intended to be, nor should it be considered as being, investment advice.


The Knights of Labor preferred to resolve conflict via rather than strike?

arbitration


What is a good sentence for the word militarism?

"The country preferred using diplomacy rather than militarism."


What are the types of stocks?

Common stockPreferred stockCommon stock is usually what is issued to the general public. The term common Stock doesn't carry any negative connotations, but rather indicates that it is the "standard" stock the company has offered. Common shareholders have voting rights.And as the word suggests, "Preferred" stock has certain advantages over common stock.First, preferred share holders are paid dividends on their stock market investment before common share holders. And if a company isn't doing well, the Common stock dividend is eliminated first.Second, is if a company goes out of business, the owners of preferred shares have prior claim to any assets that remain when the company is dissolved and after bond holders and other creditors have been paid.Owners of common stock are the last in line to pick up the pieces of the fallen corporation.


What is the point of DragCave?

The point of DragCave is rather simple. Get a whole lot of dragons on your scroll. Rare preferred.


Is common stock have a normal debit or credit balance?

All Stock is listed under Owners Equity or also known as Stockholders Equity. If you look at the Accounting Equation you understand that Assets = Liabilities + Owners (Stockholders) Equity Assets maintain a Debit Balance, while Liabilities maintain a Credit Balance. OE (Stockholders Equity) also will maintain a Credit Balance. Therefore stock will maintain a "Credit" Balance. The only exception to this rule is "Treasury" stock which is stock purchased back by the company to reduce outstanding stock. Although Treasury Stock is still listed in Equity, it is listed as a negative number (or rather a debit).


Which is the best description of the settlers in the early days of the Virginia Colony?

They preferred to search for riches rather than farm.


Did The English turned down the Albany Plan of Union because they preferred to deal with the colonies individually rather than as a group?

Yes the English rather deal with colonies individually rather then as a group. :) I had this question on my quiz :)


Why did plantation owners preferred to have slaves rather than indentured slaves?

The children of slave woman were slaves who didn't have to be purchased.


What is a preferred agents?

Probably travel agents in their network they would rather have you use since they get some kind of incentive from the association.


What is preferred agents?

Probably travel agents in their network they would rather have you use since they get some kind of incentive from the association.