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What is the nature of preferred stock?

帮考网校2020-10-10 16:50:20
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Preferred stock is a type of stock that has certain preferential rights and privileges over common stock. These rights may include a fixed dividend rate, priority in receiving dividends over common stockholders, priority in receiving assets in the event of liquidation, and the ability to convert into common stock. Preferred stockholders generally do not have voting rights, or their voting rights may be limited. The nature of preferred stock is generally considered to be a hybrid between debt and equity, as it has characteristics of both.
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