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
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
Suggested Links for Additional Information on Stock
Types of Stock
(pages open in a second browser window)
An overview of common and prefered stock.
What is a Stock
An overview of stock in general.
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