Archive for January, 2023

Preferred Stock Definition, Characteristics, Types, Pros and Cons

Posted on in Bookkeeping

Convertible preferred stock, if so designated, can be converted into common stock and is noncumulative. It permits shareholders to trade their preferred shares for a specified number of common shares and perhaps achieve capital appreciation after tax. A noncumulative preferred stock is not convertible for common stock if it is not convertible. There are important […]