Trust preferred stock:

Name: Trust preferred stock:
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

Trust preferred stock allows banks to pay dividends that are tax deductible, making it a popular financing option for banks. They do pay dividends, but these dividends are deductible for tax purposes, making them more attractive to investors. Trust preferred stock also typically has lower priority than other claims, making it a riskier investment option. It is typically issued through a "preferred" bank subsidiary.

Trust Preferred Stock