A closed-end investment company is a pooled investment fund that issues a fixed number of shares in a one-time offering and then has those shares bought and sold on an exchange like a stock; a professional manager runs the portfolio of assets. It matters to investors because the market price can move above or below the value of the underlying holdings, affecting returns and income, and shares may be less flexible to issue or redeem compared with open-ended funds—think of buying a slice of a privately baked pie whose market price can differ from the pie’s actual ingredients value.
cumulative preferred stockfinancial
Cumulative preferred stock is a type of share that pays fixed dividends and creates an obligation for the company to repay any missed dividend payments later; if the firm skips a dividend, those unpaid amounts build up like an IOU and must be paid to these shareholders before common shareholders receive dividends. Investors care because it offers steadier income and higher priority in the payout order, making it less risky than common stock but still subject to company solvency and interest-rate shifts.
liquidation preferencefinancial
A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.
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The Board of Directors of General American Investors Company, Inc., a closed-end investment company whose common and preferred shares are listed on the New York Stock Exchange (NYSE symbols - GAM and GAM Pr B, respectively), renewed authorization for the repurchase of up to 1,601,553 outstanding shares of 5.95% Cumulative Preferred Stock, Series B when the shares are trading at a market price below the liquidation preference of $25 per share. To date, a total of 398,447 shares of Preferred Stock have been repurchased and retired. This program is separate from, and in addition to, the common stock repurchase program.
General American Investors was founded in 1927, has been publicly traded since its inception, and has been listed on the NYSE since 1930. The objective of the Company is long-term capital appreciation through investment in companies with above average growth potential. As of November 30, 2025, the Company had total net assets of approximately $1.5 billion applicable to its 23.2 million shares of common stock outstanding. The aggregate liquidation value of the Company’s 7.6 million shares of 5.95% Cumulative Preferred Stock, Series B is $190.0 million.
