preferred shares Sentence Examples

1. Preferred shares are often issued by companies to raise capital without diluting the ownership of common stockholders.
2. Preferred shares typically pay a fixed dividend rate, making them an attractive investment for income seekers.
3. Unlike common shares, preferred shares do not carry voting rights, so they provide less control to shareholders.
4. Preferred shares can be classified as cumulative, meaning unpaid dividends accumulate and must be paid eventually.
5. Non-cumulative preferred shares do not accumulate unpaid dividends, so missed payments are forfeited.
6. Convertible preferred shares can be exchanged for a predetermined number of common shares at the shareholder's discretion.
7. Companies may also issue adjustable-rate preferred shares, where the dividend rate fluctuates based on market conditions.
8. Preferred shares are sometimes considered a hybrid security, as they combine features of both stocks and bonds.
9. The credit rating of preferred shares can affect their attractiveness to investors, as it indicates the company's ability to pay dividends.
10. The issuance of preferred shares is often subject to regulatory approval, especially if the shares are intended to be listed on a stock exchange.

preferred shares Meaning

Wordnet

preferred shares (n)

stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights

Synonyms & Antonyms of preferred shares

No Synonyms and anytonyms found

FAQs About the word preferred shares

What is the meaning of the word preferred shares

stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights

What are the synonyms of the word preferred shares

No synonyms found.

What are the antonyms of the word preferred shares

No antonyms found.

What is the usage of word preferred shares

Preferred shares are often issued by companies to raise capital without diluting the ownership of common stockholders.

Preferred shares typically pay a fixed dividend rate, making them an attractive investment for income seekers.

How to use the word preferred shares in a sentence?

Unlike common shares, preferred shares do not carry voting rights, so they provide less control to shareholders.

Preferred shares can be classified as cumulative, meaning unpaid dividends accumulate and must be paid eventually.