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A Preferred Stockholder Is Sometimes Referred to as a Residual

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A preferred stockholder is sometimes referred to as a residual owner, since in essence he or she receives what is left-the residual-after all other claims on the firm's income and assets have been satisfied.


Definitions:

Factoring

The mathematical process of breaking down an expression into a product of its simpler factors or components.

Equation

A mathematical statement that asserts the equality of two expressions, usually denoted by the symbol "=".

X-Intercepts

Points where a graph intersects the x-axis.

Graphing Calculator

A handheld electronic device capable of plotting graphs, solving simultaneous equations, and performing other tasks with variables.

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