Shareholders Equity Flashcards
1
Q
What are preferred shares?
A
Preferred shares are prioritised over common shares in the instance of shareholders receipts of dividends
Liquidation preference
2
Q
What are cumulative dividends?
A
Dividends royalties pile up instead of being written off when procrastinated
3
Q
Are preferred/common shares convertible?
A
Yes, they can be interchanged, meaning a preferred share can turn into a common share
4
Q
What does a share being callable mean?
A
A company can buy the share back
5
Q
What does retractable mean?
A
When the shareholder has a right to sell their share back to the company even if they don’t want to
