Centaurus Diamond Tech. Inc. (fka CTDT)

[bizops12]

Preferred shares are just a different class of stock. They have a higher claim on company assets and earnings than common stock. Dividends must be paid to preferred shareholders before they are paid to common share holders. They can also be set up as a debt instrument. The preferred shares are basically securing the loan/investment. In case of default the company assets would go to preferred shareholders before going to common shareholders. Preferred shares have no voting privileges but are much safer for investors than common shares. Basically us common share holders are in last position should the company go belly up. Preferred shares can normally be traded just like common shares. One other note on preferred shares. Sometimes they guarantee a rate of return/dividend. If the company does not pay the dividend then the amounts due accrue for the shareholder.

There are not time frames related to preferred shares. Warrants (the right to buy shares at a particular price) normally have an issue date and an expiration date or time frame from issue.

Hope this answer your question. I apologize if I am telling you a bunch of stuff you already know.