Acc291/Wk5
Stocks 1.
Stocks Name
Instructor
XACC / 291 Date
Stocks 2.
Stocks shares known as “preferred”, because in the event of the company being liquidation, the preferred stock shares will receive dividends, and business assets before the common shares (Crook, 2000). If the company does not have enough money to pay both the preferred shares, and the common shares, the preferred shareholder must receive his shares first. Many different types of preferred stock shares and they all have distinct features that captivate investors, and allow them to make their own choices from their preferences. They include:
Cumulative preferred shares, their entitled to make up any missed up payment of dividend before the common shares receive their dividends.
Adjustable preferred shares are in line with changes in line with the market interest rates which protect the shareholder in a rising rate environment.
Convertible preferred shares can be exchanged for common shares at a pre-determined ratios (Mande, 2006)
Many Investors desire preferred shares, because of the regular dividends, which act as an income investment and the priority they have in receiving dividends before the common stock shares and in case of business liquidity they still receive the cash before them. Dividend rate of preferred shares can be significantly better than many other investments like the Treasury notes. When there is value gain in the market common stock, the convertible preferred shares have an additional potential to participate. Preferred shares have fixed dividends which the issuer
Stocks 3.
has a high obligation to pay, and ensure their satisfied before they consider the common stock dividends if they exist (Mande, 2006).
I would select preferred stock shares as an investment because of the following reasons “Higher fixed-income payments than bonds or common stock, lower investment per share compared to
Stocks Name
Instructor
XACC / 291 Date
Stocks 2.
Stocks shares known as “preferred”, because in the event of the company being liquidation, the preferred stock shares will receive dividends, and business assets before the common shares (Crook, 2000). If the company does not have enough money to pay both the preferred shares, and the common shares, the preferred shareholder must receive his shares first. Many different types of preferred stock shares and they all have distinct features that captivate investors, and allow them to make their own choices from their preferences. They include:
Cumulative preferred shares, their entitled to make up any missed up payment of dividend before the common shares receive their dividends.
Adjustable preferred shares are in line with changes in line with the market interest rates which protect the shareholder in a rising rate environment.
Convertible preferred shares can be exchanged for common shares at a pre-determined ratios (Mande, 2006)
Many Investors desire preferred shares, because of the regular dividends, which act as an income investment and the priority they have in receiving dividends before the common stock shares and in case of business liquidity they still receive the cash before them. Dividend rate of preferred shares can be significantly better than many other investments like the Treasury notes. When there is value gain in the market common stock, the convertible preferred shares have an additional potential to participate. Preferred shares have fixed dividends which the issuer
Stocks 3.
has a high obligation to pay, and ensure their satisfied before they consider the common stock dividends if they exist (Mande, 2006).
I would select preferred stock shares as an investment because of the following reasons “Higher fixed-income payments than bonds or common stock, lower investment per share compared to
References: Crook, K., & Financial Accounting Standards Board. (2000). Accounting for share-based Payment. Norwalk, Conn: The Board. Mande, V., Chavis, B., & Tax Management Inc. (2006). Accounting for share-based Compensation. Arlington, VA: Tax Management