Half Stock
What is a Half Stock?
A half stock has a par value that is 50% of what is considered normal.
How Does a Half Stock Work?
Let's assume the par value of a share of preferred stock is usually $100. Company XYZ issues preferred stock with a par value of $50, making it a half stock.
Why Does a Half Stock Matter?
Half stock is more popular with preferred shares: The shares' dividends often hinge on the size of the shares' par values. Half stocks might also have reduced claims on company assets in the event of bankruptcy, as liquidation distribution is often dependent on par value.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
