These funds will pay
preferred equity holders a preferred return, typically monthly or annually.
Not exact matches
The model «Convertible Security» Yokum has published also incorporates that clever feature of more sophisticated note templates, whereby the
holder of the convertible instrument gets no more
preferred equity for her investment than does the new money in the Qualified Financing, and takes her discount in the form of common shares.
The
preferred dividend is paid out only after interest has been first paid to regular debt
holders but before common
equity holders can retain any of their profits.
The moral hazard issue to
equity and
preferred holders is dead.
Account
holders, depending on the balances they maintain, also get
preferred rates on CDs, personal loans, home
equity loans and home
equity lines of credit.
Equities do not give
holders any legally enforceable contract rights to receive cash payments except that cash payments can not be made to common stocks unless required payments are first made to cumulative
preferred stocks, or redemption prices when due are paid on redeemable
preferred stocks.