What is the prefered share?

Answer 1

Equity shares are certificates that how partial ownership of a firm. Most stock is common stock. The bad news for common stock holders is that in the evento f bankruptcy, everyone else gets paid before they do. The good news is that if the company does well, they get to keep everything that is left over. They also get to choose the board of directors.

Preferred shares are also stock shares. However, they usually get paid a dividend every quarter (this could be cash or could be more shares of stock). If everything goes well, they have no voting rights. If things go poorly -- like dividends not being paid, then they get voting rights and may be able to take partial control of the company. In the event of bankruptcy, they get paid after their creditors -- but before the common shareholders.

Sometimes preferred shares can be turned into common shares. This frequently happens when companies go public. Investors who have preferred shares of a private firm often get more shares instead of dividends Then when the firm goes public, they exchange them for common shares -- which they can sell.

Answer 2

Are you are trying to ask what a preferred share of stock is? A preferred share of stock is put ahead of common stock in the event of bankruptcy. It usually has first claim to dividends also. It has several other benefits that are spelled out in the articles of incorporation.

If that is not your question, you need to reword it and try again.

Answer 3

at this point in time a foolish nation