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Preferred Securities
Generally, preferred securities are issued by a corporation as longer term securities that may or may not have a final maturity date. Such corporation is contractually obligated to make timely payments of dividends or interest (as applicable) and principal upon maturity. Certain types of preferred securities are issued for their favorable accounting treatment and constitute a debt obligation of such corporate entity for tax purposes while maintaining equity treatment in a company’s accounting statements. The primary advantage of investing in preferred securities is derived from the higher claim on assets as opposed to holding a common equity stake in such corporation. |
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CEDAR RIDGE PARTNERS |
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