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I have been offered to buy Ayala Preferred Shares by virtue of my Ayala Corp stockholdings. I am not sure of the advantages of preferred shares over owning common shares which I now have. Would you recommend I buy into this offer? Thanks in advance.

 

 

you should not sis. The only advantage of preferred shares is you are prioritized before the common stock stockholders in the event of liquidation. Nothing more nothing less.

 

Preferred shares are in concept the hybrid of bonds and common stock. Do you know that the corporations invented preferred shares in order to raise funds without the problem of obligatory periodic payments in case of bonds and without losing control/income sharing privileges in case for Common stocks. You see, in the seasons or earnings, common shareholders get most of the the benefits and in seasons of recession, bonds stand out. In either seasons, preferred shares are just in one corner waiting for the liquidation of the company. If you invest, you look forward to grow your investments not waiting for the moment your investments to be wiped out. So don't.

 

Hope i helped you.

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  • 3 weeks later...

you should not sis. The only advantage of preferred shares is you are prioritized before the common stock stockholders in the event of liquidation. Nothing more nothing less.

 

Preferred shares are in concept the hybrid of bonds and common stock. Do you know that the corporations invented preferred shares in order to raise funds without the problem of obligatory periodic payments in case of bonds and without losing control/income sharing privileges in case for Common stocks. You see, in the seasons or earnings, common shareholders get most of the the benefits and in seasons of recession, bonds stand out. In either seasons, preferred shares are just in one corner waiting for the liquidation of the company. If you invest, you look forward to grow your investments not waiting for the moment your investments to be wiped out. So don't.

 

Hope i helped you.

 

Preferred Shares are also prioritized as to dividends, and in that sense behave just like fixed income instruments, and considering that is Ayala, you can expect regular dividend payments. If the purpose of acquiring preferred shares is to take advantage of the high interest rates, I don't see what the disadvantage is.

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^^ yes it is fixed and they will not pay you more than what is stated.

 

In the glory days of the company, common stockholders get the lion's share of the earnings. While preferred will only have to contend with the rate.

 

There are various types of preferred shares, so better if check if it is participating or non-participating.

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Stock pick??

 

Meralco handled by Manny is my stock pick for the long term investment. You can never go wrong with Manny. :D

 

greetings, madam. wub.gif

just want your opinion:

do you think market conditions

are already stable enough

to go all out in the stock market?

i'm more into mutual funds and

as of now, ngayon pa lang ako

nakakabawi after so many years

of loss.

tia!

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greetings, madam. wub.gif

just want your opinion:

do you think market conditions

are already stable enough

to go all out in the stock market?

i'm more into mutual funds and

as of now, ngayon pa lang ako

nakakabawi after so many years

of loss.

tia!

 

 

right now in may opinion hindi pa rin stable ang stock market compared last 3 years ago.

 

Actually yon mga stock na nabili ko last 2 years ago eh nasa akin pa rin at hindi pa rin nakaka recover

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bad timing ka. you bought when stocks are on a year long downtrend. thats why until now di pa naka recover ang nabili mo. the perils of buying low, you don't know if the next few months the price will be lower.

 

right now in may opinion hindi pa rin stable ang stock market compared last 3 years ago.

 

Actually yon mga stock na nabili ko last 2 years ago eh nasa akin pa rin at hindi pa rin nakaka recover

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  • 2 weeks later...

same where everybody else buys through, a stock broker. most brokers are based in manila but there are banks which also offer brokerage services so i guess thats the more convinient choice for you since those banks have provincial branches.

 

Boss san ba makakabili ng stocks if sa bacolod ako? thanks//

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