Guaranteed Stock
Categories: Stocks, Investing, Company Valuation
Only three things in life are guaranteed: death, taxes, and guaranteed stock.
Guaranteed stock could mean two different things, depending on whether you're talking to an investor or a business owner.
If you're talking to an investor, guaranteed stock refers to stock that guarantees its holders dividends. Guaranteed stock can be preferred stock or common stock, and isn't very common. It's meant to lure investors, and lure them now, which might mean they're in a bit of a pickle...especially since oftentimes guaranteed stock means the dividends are guaranteed by a third-party business.
If you're talking to a business owner (one who sells physical goods), then guaranteed stock might be referring to their inventory of goods that is always on-hand. Without guaranteed stock, online businesses like Amazon would grind to a halt.