Preferred stocks recieve money when bankruptcy is declared but that is after all of the bonds, loans, secured loans have been paid off. Therefore it does not make a big difference in the instance that the company goes bankrupt.
Preferred stock is more of a cross over between a bond and a stock. Generally preferred stockholders have no voting rights. If you negotiate for preferred stock it would be beneficial to recieve a percentage in dividends every year. These dividends will accumulate every year and must be paid before common stock dividends are paid out.
The language in your preferred stock contract is key to a wide range of options and risks that you expose yourself to.
I hope this helps.
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Preferred stock is more of a cross over between a bond and a stock. Generally preferred stockholders have no voting rights. If you negotiate for preferred stock it would be beneficial to recieve a percentage in dividends every year. These dividends will accumulate every year and must be paid before common stock dividends are paid out.
The language in your preferred stock contract is key to a wide range of options and risks that you expose yourself to.
I hope this helps.
Sent from my SM-G930V using Tapatalk
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