Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

preferred dividend

Read a random definition: chartered ship

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

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
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
LSD+ is ad-free, with DMs, discounts, case briefs & more.