he island of Iceland might be the first country in “national bankruptcy” to follow in the steps of the credit crunch.

Iceland is all but officially bankrupt

People go bankrupt all the time. Companies do, too. But countries?

Iceland was on the verge of doing exactly that on Thursday as the government shut down the stock market and seized control of its last major independent bank. That brought trading in the country’s currency to a halt, with foreign banks no longer willing to take Icelandic krona, even at fire-sale rates.

With the government seemingly powerless to do anything about it, analysts said there was probably only one realistic option left: for Iceland to be bailed out by the International Monetary Fund (IMF).

Iceland Teeters On Bankruptcy

Iceland is getting closer to becoming the first nation to go bankrupt as a result of the subprime mortgage crisis and resulting squeeze on lending.

Also read :

• America’s Subprime Crisis - Timeline
• WALL- STREET IN PANIC - Lehman Brothers Collapses
• Washington Mutual Collapsed - Biggest in US History

[via -  iht , forbes ]

Like common stock, preferred stocks represent partial ownership in a company, each share of preferred stock is normally paid a guaranteed, relatively high dividend and has first right over common stock at the company’s assets in the event of bankruptcy.

• Preferred stock shareholders do not enjoy any of the voting rights of common stockholders.
• Preferred stock may carry superior priority over common stock in the payment of dividends and upon liquidation.
• Preferred stock may carry a dividend that is paid out prior to any dividends to common stock holders.
• The main benefit to owning preferred stock is that the investor has a greater claim on the company’s assets than common stockholders.