Prior Preferred Stock

外汇网2021-06-19 13:32:30 108

A type of pferred stock with a higher claim on assets and pidends than other issues of pferred stock. If a firm did not generate enough money to fulfill all of its pidend schedule requirements, those holding prior pferred stocks have first priority.

Taobiz explains Prior Preferred Stock

Since prior pferred stock holders have a higher claim on the pidends of a company during normal operations and a higher claim on assets during bankruptcy, these shareholders are subject to less risk than other pferred or common shareholders. As with many other lower risk investments, these stocks normally offer a lower rate of return relative to other forms of stock because they are subject to less risk.

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