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To fill out a stock certificate, you fill in the name of the shareholder, the name of the corporation, the number of shares represented by the certificate, the date, and possibly an identification number. There is also a space for a corporate officer to sign on behalf of the corporation and to affix the corporate seal.
Preferred securities generally have long maturity dates?like 30 years or longer?or no maturity date at all, meaning they are perpetual in nature. However, most preferreds have a stated "call date" that the issuer may choose to redeem them, usually at the par value.
How do money market funds work? Money market funds invest in very-low-risk assets like Treasury bonds, CDs, or short-term, high-quality corporate bonds with maturities of less than a year. Unlike stock or bond funds, they have a fixed price of $1 per share.
Preferred shareholders who convert their shares give up their rights as preferred shareholders (no fixed dividend or higher claim on assets) and become common shareholders (with the ability to vote and participate in share price appreciation).
Preferred stock is sometimes used by companies as a takeover defense by assigning very high liquidation value for the preferred shares that must be paid off if the company is taken over.
An investor owning a callable preferred stock has the benefits of a steady return. However, if the preferred issue is called by the issuer, the investor will most likely be faced with the prospect of reinvesting the proceeds at a lower dividend or interest rate.
A preferred stock certificate is a document that identifies the ownership share of an investor in a corporation.
Preferred shares are so called because they give their owners a priority claim whenever a company pays dividends or distributes assets to shareholders. They offer no preference, however, in corporate governance, and preferred shareholders frequently have no vote in company elections.