Some key differences compared to stocks
Preferred Shares
Compared to ordinary shares, preferred stockholders usually have no or limited, voting rights
Have a higher claim to dividends or asset distribution than common stockholders - i in the event of liquidation, preferred stockholders have seniority over common stockholders and will be paid first
Perps (Perpetual Securities)
Most perpetual securities are fixed-income instruments just like bonds, paying a fixed interest rate at regular intervals
No maturity date and the issuer has the right to never return the principal amount to you. (Like the Hyflux saga)
Convertible Bonds
Fixed-income debt security that pays interest payments but can be converted into a predetermined number of common stock or equity shares.
Attractive option for investors as they often provide a win-win situation for them; ensuring seniority in the event of liquidate and capital appreciation if investors choose to convert these bonds at the end of maturity to common stocks
Some key differences compared to stocks
Preferred Shares
Compared to ordinary shares, preferred stockholders usually have no or limited, voting rights
Have a higher claim to dividends or asset distribution than common stockholders - i in the event of liquidation, preferred stockholders have seniority over common stockholders and will be paid first
Perps (Perpetual Securities)
Most perpetual securities are fixed-income instruments just like bonds, paying a fixed interest rate at regular intervals
No maturity date and the issuer has the right to never return the principal amount to you. (Like the Hyflux saga)
Convertible Bonds
Fixed-income debt security that pays interest payments but can be converted into a predetermined number of common stock or equity shares.
Attractive option for investors as they often provide a win-win situation for them; ensuring seniority in the event of liquidate and capital appreciation if investors choose to convert these bonds at the end of maturity to common stocks