Blank Check Preferred Stock
 |
Definition of 'Blank Check Preferred Stock'A method companies use to simplify the process of creating new classes of preferred stock to raise additional funds from sophisticated investors without obtaining separate shareholder approval. |
 |
Investopedia explains 'Blank Check Preferred Stock'To do this a company must amend its articles of incorporation to create a class of un-issued shares of preferred stock whose terms and conditions may be expressly determined by the company's board of directors.This kind of stock can also be created by a public company as a takeover defense in the event of a hostile bid for the company (poison pill). |
Related Definitions
Articles Of Interest
-
Mergers And Acquisitions: Understanding Takeovers
In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game. -
Bloodletting And Knights: Medieval Investment Terms
From bloodletting to ye olde black knights, things on Wall Street are getting downright medieval! -
A Peek Into Shareholder Meetings
Shareholder meetings can be glamorous, exciting or controversial, but not particularly revelational. Here's a quick look at what to expect. -
Weighted Average Cost Of Capital (WACC)
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality -
Earnings Guidance: Can It Accurately Predict The Future?
Explore the controversies surrounding companies commenting on their forward-looking expectations. -
Guide To Embedded Options In Bonds
Investors should be aware of embedded options that may be available in certain securities as these options may affect the value of the security. -
Visual Guide To Investing In Preferred Stock ETFs
Preferred stock ETFs have become a big hit with some investors. Find out why! -
Everything Investors Need To Know About Earnings
We go over the concepts behind the excitement over the most important figure in the stock market. -
Is a dividend reduction a signal to sell?
Although a dividend reduction is generally viewed as a signal to sell, the decision is not as clear-cut as if the dividend were to be eliminated altogether, which would be an unequivocal sell ... -
Carl Icahn's Investing Strategy
Buying up failing investments and turning them around helped to create the "Icahn lift" phenomenon.
Free Annual Reports