Harris Texas Preferred Stock Certificate

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Harris
• Control #: US-1080BG
• Format: Word; Rich Text

Description

Preferred stock is a class of shares of stock in a corporation which gives the holders priority in payment of dividends and distribution of assets in case of dissolution of the corporation over owners of "common" stock. Preferred stock shareholders do not participate in higher dividends if the corporation makes large profits, and usually cannot vote for directors. Also unlike common stock, a preferred stock pays a fixed dividend that does not vary, although the company does not have to pay this dividend if it lacks the financial ability to do so. The dividends paid to preferred shares are deducted as an expense because they are required payments, unlike the common stock dividend which is just a sharing in part of the profits. Like common stock, preferred stocks represent partial ownership in a company. A stock certificate must be in writing and signed by the designated corporate officers. It is contractual in nature, since it either sets forth or incorporates by reference the rights, privileges, and duties of the corporation and of the stockholder, both in their relationship to each other and to other stockholders. Harris Texas Preferred Stock Certificate is a legal document issued by Harris Texas Corporation to shareholders as evidence of ownership in the company's preferred stock. It entitles the stockholder to certain rights and privileges, including preferential dividend distributions and priority in the event of liquidation or bankruptcy. The Harris Texas Preferred Stock Certificate represents a higher claim on the company's assets and earnings compared to common stockholders. It is considered a hybrid type of security that combines characteristics of both debt and equity securities. While preferred stockholders generally do not have voting rights, they are entitled to receive fixed dividends before any dividends are paid to common stockholders. There are several types of Harris Texas Preferred Stock Certificates available in the market, each having its own distinguishing features. These types may include: 1. Cumulative Preferred Stock: This type of preferred stock ensures that any missed dividend payments accumulate and must be paid to the shareholders before any dividend is paid to common stockholders. Cumulative preferred stock offers a higher level of security to investors in terms of dividend payments. 2. Non-Cumulative Preferred Stock: Unlike cumulative preferred stock, non-cumulative preferred stock does not accumulate missed dividend payments. If a dividend payment is missed, the stockholders will not have any claim on the unpaid dividends. This type of preferred stock tends to offer higher yields to compensate for the increased risk. 3. Convertible Preferred Stock: Convertible preferred stock gives the stockholder the option to convert their preferred shares into a predetermined number of common shares. This feature provides potential upside if the company's common stock performs well in the future. 4. Callable Preferred Stock: Callable preferred stock allows the company to redeem the shares at a predetermined price after a specified period. This gives the company the flexibility to retire the preferred stock early if they choose to. 5. Series A, B, C, etc.: Some companies may issue multiple series of preferred stock, denoted as Series A, Series B, Series C, and so on. Each series may have different terms, dividend rates, and priority rights depending on the issuance order. Investors interested in Harris Texas Preferred Stock Certificates should carefully review the terms and conditions specified in the certificate, including dividend rates, conversion rights, call provisions, and voting rights (if any). It is recommended to consult with a financial advisor or professional before making any investment decisions in preferred stocks.

Harris Texas Preferred Stock Certificate is a legal document issued by Harris Texas Corporation to shareholders as evidence of ownership in the company's preferred stock. It entitles the stockholder to certain rights and privileges, including preferential dividend distributions and priority in the event of liquidation or bankruptcy. The Harris Texas Preferred Stock Certificate represents a higher claim on the company's assets and earnings compared to common stockholders. It is considered a hybrid type of security that combines characteristics of both debt and equity securities. While preferred stockholders generally do not have voting rights, they are entitled to receive fixed dividends before any dividends are paid to common stockholders. There are several types of Harris Texas Preferred Stock Certificates available in the market, each having its own distinguishing features. These types may include: 1. Cumulative Preferred Stock: This type of preferred stock ensures that any missed dividend payments accumulate and must be paid to the shareholders before any dividend is paid to common stockholders. Cumulative preferred stock offers a higher level of security to investors in terms of dividend payments. 2. Non-Cumulative Preferred Stock: Unlike cumulative preferred stock, non-cumulative preferred stock does not accumulate missed dividend payments. If a dividend payment is missed, the stockholders will not have any claim on the unpaid dividends. This type of preferred stock tends to offer higher yields to compensate for the increased risk. 3. Convertible Preferred Stock: Convertible preferred stock gives the stockholder the option to convert their preferred shares into a predetermined number of common shares. This feature provides potential upside if the company's common stock performs well in the future. 4. Callable Preferred Stock: Callable preferred stock allows the company to redeem the shares at a predetermined price after a specified period. This gives the company the flexibility to retire the preferred stock early if they choose to. 5. Series A, B, C, etc.: Some companies may issue multiple series of preferred stock, denoted as Series A, Series B, Series C, and so on. Each series may have different terms, dividend rates, and priority rights depending on the issuance order. Investors interested in Harris Texas Preferred Stock Certificates should carefully review the terms and conditions specified in the certificate, including dividend rates, conversion rights, call provisions, and voting rights (if any). It is recommended to consult with a financial advisor or professional before making any investment decisions in preferred stocks.