Finance / July 19, 2018 / Alianna Dominguez
Depreciation, i.e. a decrease in an asset's value, may be caused by a number of other factors as well such as unfavorable market conditions, etc. Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time. Opposite of depreciation is appreciation which is increase in the value of an asset over a period of time.
Preferred stock is also a unit of corporate ownership. If you own preferred shares, you are entitled to certain preferences over holders of common stock. For the purposes of our discussion, as a preferred shareholder, you will usually be paid before a common share stockholder if the company goes out of business. In other words, preferred shareholders get equity out of a company before common shareholders.
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