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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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22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
9:42
My name is renard99 and I just sent @babycat feet pics
glovediedthisishismom
9:42
nobody is at the office today they should let little glovey go home and watch harry potter
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