|
|
| *The Commerce Journal>>>Investing |
What is the difference between convertible prefer stocks and regular pref stock concerning risk/return/etc.? |
What is the difference between convertible prefer stocks and regular pref stock concerning risk/return/etc.? Convertibles may have a smaller return. After they reach conversion parity, they move together with the price of the common stock into which they are convertible, so they assume a degree of risk similar to the risk in the common stock. But they are protected against downward risk by their dividend return. If the stock declines to below conversion parity, the preferred will revert to its preferred stock status just like a nonconvertible. That is, the yield will keep it from declining further. |
| Tags |
| Small Business Renting & Real Estate Personal Finance Investing Insurance Credit Corporations |
| Related information |
Risk return trade-off means that you have to risk money to make more money. If you put your money into government bonds it is nearly guaranteed you will get your money back, unless the governmen... Usually not. Preferreds are much more sensitive to interest rates than their common stock counterparts, since they generally have a fixed dividend. Similar to bond prices, when interest rates ris... scottrade 7 dollar trades and very easy to do. ...I dont know for sure but I think they have the same "bets" in Vegas and its a easier to understand. ...I open my Roth IRA through them and later became an agent with the company. I don't know what its like in Canada, but my experience been good. My investments been doing pretty well with an ave... Whoa ! Don't go at the boss just yet ! When you hear of monthly "interest" of 10%...it only means you're getting 10% interest and the monthly PART of that will go to your accoun... Oliver Velez Students of his Trade for Life program are given $50,000 to trade at no risk. Oliver's website: ... Ok, first of all, forget PayPal as a way out of paying taxes -- they're not the ones who would report the sale. Now, with regards to using your stock market account: If you make a purchase... |
Commerce Categories--Copyright/IP Policy--Contact Webmaster |