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LSDefine

Simple English definitions for legal terms

dividend preference

Read a random definition: bifurcated trial

A quick definition of dividend preference:

Dividend preference is when people who own preferred shares of a company get their dividends before people who own common shares. Preferred shares are a type of stock that usually don't have voting rights, but they do have the advantage of getting paid first when the company distributes profits to shareholders. This means that if a company has to choose between paying dividends to preferred shareholders or common shareholders, the preferred shareholders get their money first.

A more thorough explanation:

Dividend preference is a term used in the stock market. It means that holders of preferred shares have the right to receive a dividend before the company pays dividends to holders of common shares. Preferred shares are a type of stock that gives shareholders priority over common shareholders when it comes to receiving dividends and assets in the event of liquidation.

For example, if a company has both preferred and common shares and decides to pay a dividend, it must first pay the dividend to the preferred shareholders before paying any dividends to the common shareholders. This ensures that preferred shareholders receive a return on their investment before common shareholders.

One example of preferred stock is cumulative preferred stock. This type of stock must receive dividends in full before common shareholders may receive any dividend. If the corporation omits a dividend in a particular year or period, it is carried over to the next year or period and must be paid before the common shareholders receive any payment.

Another example is callable preferred stock. This type of stock may be repurchased by the issuing corporation at a prestated price, usually at or slightly above par value.

dividend-payout ratio | dividend-received deduction

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Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
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
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