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Preferred Shares are more like bonds (in that they generally pay a higher dividend rate and are more immune to market swings). In the event of bankruptcy, pref
by ksherlock 14y ago
Preferred Shares are more like bonds (in that they generally pay a higher dividend rate and are more immune to market swings). In the event of bankruptcy, preferred shares have more priority over common shares but less than bonds.
Apple doesn't need the money so I'm not sure why they would want to issue them.
- cremnob 14y agoThe preferred shares would be issued to everyone that holds the common equity. They wouldn't be raising money if they followed Einhorn's plan.