Matthew D'Ascenzo, Attorney at Law

Matthew R. D’Ascenzo


Posted on September 6, 2018

Preferred stock provides flexibility in structuring investments. It can furnish various dividend and participation rights (such as rights to participate with common stock in proceeds from company sales) in order to achieve a company’s capital raising goals and meet investors’ desired economic returns.

This very flexibility, however, results in a potentially off-putting thicket of legal terminology.  To pare back this thicket, I will be sharing a series of blog posts over the next several weeks explaining the attributes of the following types of preferred stock:

  • Non-convertible, straight preferred stock
  • Non-convertible, double dip participating preferred stock
  • Convertible, non-participating preferred stock
  • Convertible, conventional participating preferred stock
  • Convertible, double-dip participating preferred stock

These posts are intended to provide a brief overview of the different types of preferred stock. If you are considering raising capital, you should discuss with legal counsel whether any of these classes of preferred stock are appropriate for your capital raise.

This post was written by Matthew D’Ascenzo. 

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