Skip to main content

View Diary: It's Not Wage Stagnation, It's Wage Robbery (151 comments)

Comment Preferences

  •  Except for utilities few public companies (0+ / 0-)

    issue preferred stock, and haven't for a long time. Companies will issue convertible debt or straight debt. Preferred stock doesn't play a role in the capital structure of public companies any more. Preferred is used extensively in private companies and is issued to investors so they have a preference in liquidation over the founders and other common stockholders.

    "let's talk about that"

    by VClib on Tue Mar 04, 2014 at 05:36:17 PM PST

    [ Parent ]

    •  I am aware of the role of preferred (3+ / 0-)
      Recommended by:
      VClib, lunachickie, FindingMyVoice

      stock in private companies. Most public companies began life as private ones, in which case preferred vs common was relevant.

      In public companies, class A and class B shares play a similar role, though not all companies divide their stock into separate classes. For employees, Class A = power over the direction of the company, Class B = roll those dice, baby!

      As a form of employee compensation, stock is simply a means of deferring useful pay that could otherwise be being invested in the demand side economy - if the employee is lucky. If the employee is not lucky, it's a means of permanently not compensating the employee for a portion of their labor.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site