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LSDefine

Simple English definitions for legal terms

callable preferred stock

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A quick definition of callable preferred stock:

Callable preferred stock is a type of stock that a company can buy back from its shareholders at a set price. This means that the company has the option to repurchase the stock if they choose to do so. Preferred stockholders usually have priority over common stockholders when it comes to receiving dividends and assets in the event of liquidation, but they may not have voting rights.

A more thorough explanation:

Callable preferred stock is a type of stock that a company can buy back from shareholders at a predetermined price. This price is usually slightly above the stock's par value. Preferred stockholders receive dividends before common stockholders, but they usually do not have voting rights.

For example, if a company issues callable preferred stock with a par value of $100 and a callable price of $105, the company can buy back the stock from shareholders for $105 per share. This is beneficial for the company if interest rates decrease, as they can issue new stock at a lower rate and buy back the callable preferred stock at a lower price.

Another example is if a company issues callable preferred stock with a dividend rate of 5%. If the company decides to call the stock, they will no longer have to pay the 5% dividend rate to the preferred stockholders.

Callable preferred stock is a way for companies to have more control over their finances and make changes to their capital structure. It is important for investors to be aware of the callable feature when investing in preferred stock.

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General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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