Preferred Stock
Preferred Stock represents equity shares that have preferential rights over common stock, including dividends and liquidation rights, often used in venture financing.
Benefits
Preferred stock gives shareholders priority in dividends and liquidation rights over common stockholders.
Frequently Asked Questions
What does a preferred stock have preferential rights over?
Preferred stock has preferential rights over common stock regarding dividends and liquidation.
Does preferred stock represent equity?
Yes, preferred stock represents equity with preferential rights over common stock.
What are preferred stock preferences over common stock?
Preferred stock has preferences over common stock in dividends and liquidation rights.
Key Takeaway
Preferred Stock gives shareholders priority in dividends and liquidation rights.