Clear Recent Outperformance of Korean Preferred Vs. Common Shares
In this insight, we provide reasoning behind the clear recent outperformance of Korean preferred shares versus common shares.
Among the 10 pairs, nine of them have preferred shares outperforming common shares in the past five days.
One of the main reasons why the preferred shares have recently outperformed their common counterparts is because of the expectation of the higher probability of lowering tax on dividends.
Samsung Electronics common (blue) vs preferred shares (orange) (5 days) (Source: Google finance)
