Investor Glossary-deferred stockInvestor Glossary-deferred stockInvestor Glossary-deferred stockInvestor Glossary-deferred stockInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Deferred Stock

The HTML to link to this page
 

Deferred stock is one or more shares of stock that does not pay dividends until a specified date or event occurs, such as a company reaching certain profitability levels. Deferred stock is typically held in a lock deferred stock compensation account until the expiration date. Shareholders of deferred stock do not have any rights to the assets of a bankrupt corporation until all preferred and common stockholders have been paid. Usually deferred stock is issued to company founders and certain members of management to restrict their access to dividends until dividends have been distributed to all other shareholders. Deferred stock is, therefore, subordinate to all other classes of stock. Today, deferred stock is not a common practice as the deferred stock payouts can be considerable despite the postponement in distribution. Holders of deferred stock are usually granted voting rights only after the expiration date has passed. Many corporations allow the owner of deferred stock to elect a date for distribution of deferred stock shares, subject to certain parameters set forth by the governing board.



Rate this deferred stock definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use