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Simple English definitions for legal terms

callable preferred stock

Read a random definition: tear-me-open license

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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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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