A distribution of profits to a class of preferred equity Investors that is made before distributions are made to common equity Investors. Preferred returns can relate to the return of invested capital and/or a percentage-based annual rate paid by the Issuer on the invested capital. The specific terms of the return are specified in the Issuer’s Articles of Incorporation (for a C Corporation) or Operating Agreement (for an LLC). Pertains to equity.
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by bsmith@carofin.com | Mar 8, 2019
