ECON 435: Common & Preferred Stock

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ECON 435 > ECON 435: Common & Preferred Stock

Common Stock

• The right to vote in the annual meeting
  • Know comulative vs. straight voting
• The right to share proportionally in dividends paid
• The right to share proportionally in new stock issues

Preferred Stock

• Preferences over common stock - dividends, liquidation (first to be paid)
• Dividend arrearages (company should pay unpaid back dividends, when the cumulative clause applies).
• Stated / liquating value