Equity Securities Flashcards
1
Q
Which features of preferred stock reduces inflation risk?
A
Convertable to common stock (keeps up with inflation)
2
Q
What benefit does a warrant have?
A
The issuer can reduce the interest rate (to attract investors)
3
Q
How are votes split in statutory voting?
A
1 vote per share. Must allocate an equal number
4
Q
Qualified vs. Nonqualified Dividends.
A
Qualified is maximum 20%. Non-qualified, normal tax rate.
5
Q
Which share class provides highest dividend rate?
A
callable preferred.
