Question

preferred stock is a asset, liability, stockholders equity, revenue or expense? this is coming from the perspective that we are the issuer of the preferred stock and not an investor

Answer 1

The issuer of preferred stock would show the preferred stock in the stockholders equity section.

Answer 2

Yes, it would show it as shareholder equity. However, you should note that preference shares are what are called "hybrid instruments" (because they have charteristics of both debt and equity).

Answer 3

They behave like equity in that they do represent ownership. (however, usually preference shareholders do not get to vote when it comes to electing board of directors).

Answer 4

They behave like debt in that the company is obligated to pay them dividends in the future. They are essentually a perpetuity.

Answer 5

they also get preference at the time of liquidation of the company.