Sublime

A test question might have you say that participating preferred stock pays a dividend that is “fixed as to the minimum but not as to the maximum,” while straight or cumulative preferred stock pays dividends that are “fixed both as to the minimum and the maximum.”

to the extent the company has any other debt outstanding, in connection with this investment, all those notes will convert into equity under the terms of this financing.

But while the market returned 10.28% per year, Dalbar found that the average investor made only 3.66% a year over those three decades! At that rate, your money doubles only every 20 years. The result? Instead of that million-dollar windfall, you ended up with only $146,996.

Conclusion Put your hand up if you want almost $700,000 (in today’s dollar terms) extra in net worth in 20 years’ time; plus a handy overall passive rental income per year that is just over $46,000 higher than if you didn’t invest. That’s a nice little supplementary income to their superannuation to boost their overall retirement story for their fu

Not being forced to sell stocks to cover an expense also means we’re increasing the odds of letting the stocks we own compound for the longest period of time. Charlie Munger put it well: “The first rule of compounding is to never interrupt it unnecessarily.”