Issuance of Preferred Equity
The issuance of preferred equity refers to the act of a company selling shares of stock that have a higher claim on the company's assets and earnings compared to common shares. Preferred equity typically pays a fixed dividend, similar to a bond, and may have additional features such as convertible into common shares or callable by the company. Companies may issue preferred equity as a way of raising capital without diluting the ownership and control of existing shareholders, as preferred equity does not typically carry voting rights. The issuance of preferred equity can enhance a company's financial flexibility, but it also increases its debt-equity ratio and may introduce additional risks to the company's capital structure.
Additional Details
| Metric Name |
Type |
Default Period Type |
| issuance_of_preferred_equity |
|
FY |
| Data Format |
Display Format |
Unit |
| float |
financial |
usd |