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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

Formatting Details

Data Format Display Format Unit
float financial usd