Retractable Preferred Shares

外汇网2021-06-19 16:33:51 168

A specific type of pferred stock thats lets the owner sell the share back to the issuer at a set price. Typically, the issuer can force the redemption of the retractable pferred share for cash at maturity. Sometimes instead of cash, retractable pferred shares can be exchanged for common shares of the issuer.

Taobiz explains Retractable Preferred Shares

This type of stock resembles a fixed-income bond but pays pidends instead of interest. The retractable feature allows for the value of these shares to remain steady at or above par value, as compared to the price of traditional pferred shares which fluctuate with changes in interest rates.

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