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LSDefine

Simple English definitions for legal terms

preferred dividend

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A quick definition of preferred dividend:

Preferred dividend is the money paid to people who own preferred stock. This payment is made before any money is given to people who own common stock. If a company is in trouble and can't pay all its debts, the people who own preferred stock get their money before the people who own common stock.

A more thorough explanation:

Preferred dividend refers to the payment made to the owners of preferred stock. This type of dividend is usually paid out before common stock dividends are issued. In case of bankruptcy, the claims for preferred dividends are given priority over claims for common stock dividends.

Suppose a company has issued both preferred and common stocks. The preferred stockholders are entitled to receive a fixed dividend of $2 per share, while the common stockholders receive a dividend of $1 per share. If the company earns a profit of $10,000, it will first pay out $2 per share to the preferred stockholders, which amounts to $2,000 in total. The remaining $8,000 will be distributed among the common stockholders.

This example illustrates how preferred dividends are paid out before common stock dividends. The preferred stockholders receive their fixed dividend first, and only then do the common stockholders receive their dividend.

preference | Preferred stock

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TGM
18:41
not sure if I should email them to say that, or just hold off on sending it and not give an excuse
18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
18:47
im premed idk why im here
18:48
we’re like cool and sexy and fun I get it
18:48
true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
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
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