PROVISIONS OF INDUSTRIAL PREFERRED STOCKS.

The article discusses the protective provisions of industrial preferred stock, and the generally accepted restrictive provisions used in connection with the creation of industrial preferred stock. The author looks at some of the risks inherent with the purchase of preferred stock, and the reasons why protective measures are needed. One of the most customary protective provisions of industrial preferred stock is the calling for an annual sinking fund to retire the issue over a period of years. Along with several other provisions, the author discusses the voting restrictions of preferred stockholders.