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Stocks that give shareholder the advantage of receiving cash dividends before common shareholders are called? Preferred Stock
How does preferred stockholder know the amount of dividend they will receive? Preferred stockholders are paid dividends by using the par value which is the value of the stock multiplied by the dividend rate. The par value is printed on the stock certificate and does not change and is not affected by stock market fluctuations, unlike common stock.
What are the disadvantages of preferred stocks? Preferred stock have limited rights. Some preferred stocks are callable, this means that the company can purchase it back at the company's discretion. Preferred stock have tax implication
What are the types of preferred stock? Cumulative preferred stock, Convertible stock, and participating preferred stock
What are cumulative preferred stock? Majority of stocks are cumulative preferred stocks. Cumulative preferred stocks build up dividends that are not paid
what are convertible preferred stock? This are stocks that can be exchanged for a specific amount of common shares
what are participating preferred stock? This stocks allow shareholders to share in dividends with common stockholders after all common share dividends have been distributed

Stocks that give shareholder the advantage of receiving cash dividends before common shareholders are called?

How does preferred stockholder know the amount of dividend they will receive?

What are the disadvantages of preferred stocks?

What are the types of preferred stock?

What are cumulative preferred stock?

what are convertible preferred stock?

what are participating preferred stock?

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