eHow launches Android app: Get the best of eHow on the go.
A shareholder is a person, company or other institution that owns at least one share in a business or corp… More
With direct stock purchase plans, shareholder services are utilized by potential investors to get a prospe… More
A business shareholder can vote at business meetings by attending them when they happen or by mail via pro… More
Businesses sometimes issue dividends, which are part of a corporation's profits that are given to sharehol… More
The Business Judgment Rule reviews what boards of directors have done in specific conduct-related instance… More
Calculate return on assets by dividing the net income by the average total assets in order to generate ret… More
Shareholders of audited companies should expect some attention from the IRS. Learn how to handle the audit… More
In the stock market, a proxy refers to a legally-authorized agent who can vote on a shareholder's behalf. … More
Return on equity is calculated by taking the net income and dividing it by the shareholder's equity, or th… More
In business, shareholders are the individual owners of a company and typically elect directors, who in tur… More
Shareholders get money by a corporation earning profits, which increases stock value, or through dividends… More
A preferred stock pays a higher dividend to shareholders, is paid first in the event of liquidation and ma… More
If you have decided to operate your business as a corporation, one of the first tasks you will have to und… More
A short form merger is when a parent corporation merges with a subsidiary business without a shareholder's… More
There are several ways to invest in a company. The most common way is to buy stock. In this way, you own … More
Summary: A preferred stock pays a higher dividend to shareholders, is paid first in the event of liquidation and may not be entitled to the participate in the overall growth of a business. Speak with a knowledgeable stockbroker to discuss the benefits of preferred stocks over common stocks with advice from a financial adviser in this free video on stocks.
Roger Groh is the founder of Groh Asset Management. He manages portfolios for many types of customers, including customers seeking growth, income, stability or international customers.read more
How to Shave Armpits
How to Shave the Back & Shoulders
How to Shave the Chest
How to Shave the Groin Area
How to Shave Your Head
How to Prepare the Face for Shaving
How to Shave Your Face
How to Shave Tricky Areas on the Face
How to Shave a Chinstrap
How to Shave a Goatee
How to Maintain Sideburns
How to Shave a Soul Patch
How to Trim & Shape Facial Hair
How to Maintain a Razor
"Have you ever consider buying stock? Hi, this is Roger Groh with Groh Asset Management. Along with trying to identify the rate company that put money in; one of the things that you probably had to consider is, what type of stock to buy. Do you want to buy common stock or do you want to buy today's topic which is preferred stock? The difference? Well, in the event of liquidation, a preferred shareholders is going to get paid first. In today's world, that's a pretty important thing. Frequently, preferred stocks pay a higher dividend to shareholders than common stocks. Frequently though, preferred stocks are not entitled to and do not participate in the overall growth of the business. You're more of a bondholder than a stockholders; at least from a technical point of view. Maybe the best of both worlds is a preferred stock with a high dividend yield that is also convertible end to the common stock. That way, you get the advantage of the yield while you wait; on the other hand, if the long term growth of the business is terrific, you can participate. The preferred stock may sell at a discount to the equivalent value of common stock; so you have to be careful. You need to speak with a very knowledgeable broker or banker about that type of issue. Other ways you can do it? If you have access to the institutional site of Bloomberg or Reuters, you can certainly pull up a broad list of preferred stocks that are listed both here in the United States and internationally. So they're terrific especially if you need income. One other note, sometimes with preferred stocks, the dividends are treated differently from a tax point of view as dividends in common stock. You check that out carefully and know what you're buying ahead of time. If there's any question about it, ask your tax accountant or tax attorney. Hope that helps; I'm Roger Groh with Groh Asset and thank you very much for spending time with me."
eHow Article: What Is a Preferred Stock?
Copyright © 1999-2009 eHow, Inc. Use of this web site constitutes acceptance of the eHow Terms of Use and Privacy Policy. en-US Portions of this page are modifications based on work created and shared by Google and used according to terms described in the Creative Commons 3.0 Attribution License.
