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DNP Select Income Fund, Inc. Co Message Board

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  • yessorno yessorno Apr 17, 2006 2:26 PM Flag

    would someone be kind enough to

    when a company want to raise money, it can sell regular or preferred shares. the preferred shares usually have a "guaranteed" dividend, which is paid first. if there is any money left over, it may be paid to regular shareholders.

    if the fund makes more on the money it received from prefered than it pays out to them, the regular shareholders benefit. similar, in a way, to buying on margin.

    not investment advice. not recommendation. my opinion only

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