Convertible preferred stock, known as "หุ้นกู้ตลาดรอง" in Thai, is a financial instrument that combines features of both equity and debt. These securities are a popular choice for investors looking to balance income generation with potential for capital appreciation. In this article, we'll explore the concept of convertible preferred stock in secondary markets and discuss its characteristics and benefits.

Understanding Convertible Preferred Stock

Convertible preferred stock represents an หุ้นกู้ตลาดรอง ownership stake in a company, similar to common stock. However, it carries additional features that make it unique:

Fixed Dividends: One of the primary features of convertible preferred stock is its fixed dividend payment. Holders of these shares receive a predetermined dividend amount at regular intervals.

Priority in Liquidation: In the event of a company's liquidation or bankruptcy, convertible preferred stockholders have a higher claim on the company's assets than common stockholders but lower than bondholders.

Convertible Option: The "convertible" aspect of these securities allows the shareholder to exchange their preferred shares for a predetermined number of common shares at a specified conversion ratio and price.