Preferred Stock

Preferred shares of a corporation fall somewhere between Common Stock and Corporate Bonds. They normally provide a fixed and relatively high rate of dividends and are generally considered to be of higher quality than the Common Stock of the same corporation.

Not only does Preferred Stock hold a senior position to the Common Stock concerning payment of dividends, but it has a higher standing in liquidating payouts, should the company ever get into financial difficulties.

Suggested Links for Additional Information on Stock
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Types of Stock
An overview of common and prefered stock.

What is a Stock
An overview of stock in general.