{"id":671,"date":"2019-08-12T07:09:39","date_gmt":"2019-08-12T07:09:39","guid":{"rendered":"https:\/\/www.startupcompanycounsel.com\/blog\/?p=671"},"modified":"2019-08-13T09:09:41","modified_gmt":"2019-08-13T09:09:41","slug":"including-redemption-rights-in-my-preferred-stock","status":"publish","type":"post","link":"https:\/\/www.startupcompanycounsel.com\/blog\/including-redemption-rights-in-my-preferred-stock\/","title":{"rendered":"Including Redemption Rights in my Preferred Stock"},"content":{"rendered":"
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Including Redemption Rights in my Preferred Stock<\/h1>\n

In most cases, publicly-traded corporations issue preferred and common stock. Stockholders who are classified as preferred stockholders are entitled to take their stock dividends and may be able to claim assets before any common stockholders are ever ready to do so. Redemption rights are rights that allow preferred shareholders the ability to make the company buy back these stock shares in their possession \u2013 might be in the future. For more information about the redemption rights which are available with preferred stock, you should contact the knowledgeable transactional attorneys at Startup Company Counsel today.<\/p>\n

The Par Value of Preferred Stock<\/h2>\n

Individuals who are common stock shareholders may be eligible to receive dividends. These dividends are typically based upon the stock’s market values. However, when it comes to preferred stock, the dividend rate which is available for preferred shares is, under most circumstances, the stock’s par value (i.e., part of the face value of the stock share).<\/p>\n

Stock-Redemption Rights<\/h2>\n

In most cases, investors in a company\u2019s stock ask that they receive redemption rights on their preferred stock. They do this to ensure that they will be able to obtain some quick money from the company which they have invested in \u2013 just in case; the stock does not end up performing as well as expected. Corporations<\/a> that decide to allow for stock redemption rights may have a couple of options about those rights. Those rights include the following:<\/p>\n