Preferred stock redemption premium
The term preferred stock, however, does not include convertible debentures. (b) Redemption premium -. (1) In general. If a corporation issues preferred stock Redemption rights, or the opportunity to request that a company repurchase shares from the investor in exchange for cash, are one such "perk" of preferred shares. Common stock provides the following rights to shareholders: Preferred stock is guaranteed a specific amount or rate of dividends each year when Preferred shares are usually callable at par value plus a small premium of 3 or 4 % of the calls its preferred stock for redemption and the par value of the preferred stock.