Etuosakkeet

Etuosakkeet, often translated as "preferred shares" or "preference shares," represent a class of stock that holds certain privileges over ordinary shares (common stock). These privileges typically relate to dividend payments and asset distribution in the event of liquidation. Holders of etuosakkeet are generally entitled to receive dividends before common shareholders. The dividend amount for etuosakkeet may be fixed, a percentage of the par value, or determined by another agreed-upon formula. In some cases, these dividends can be cumulative, meaning that if a dividend is missed in one period, it accrues and must be paid out before any dividends can be distributed to common shareholders.

When a company is liquidated, etuosakkeet holders also have a preferential claim on the company's assets compared to common shareholders. This means they are typically repaid their investment before common shareholders receive anything. However, their claim is usually subordinate to that of creditors and bondholders. Etuosakkeet may or may not carry voting rights. This varies significantly by company and jurisdiction. Companies issue etuosakkeet for various reasons, including raising capital without diluting the voting control of existing common shareholders or to attract investors seeking a more stable income stream and lower risk profile than common stock. The specific terms and rights associated with etuosakkeet are detailed in the company's articles of incorporation or bylaws.