• preferred-stock-definition-types
    Shareholder's Equity

    Preferred Stock definition and its Types

    Preferred Shares The shares on which rights are provided to the shareholders to claim on dividend and liquidated value of the company prior to the common shareholders called preferred stock. Types of preferred stocks Perpetual vs Redeemable shares Convertible vs Non-Convertible shares Cumulative vs Non-Cumulative shares Participative vs Non-Participative shares 1. Perpetual vs Redeemable preferred shares Perpetual preferred stock The preferred shares have a fixed maturity period called a perpetual preferred share. In this share when the maturity period ends the company returned the amounts of investors which was paid at the beginning of the period. Redeemable shares The shares which have no maturity period as well as which have…