Preferred Stock

Preferred stock is the other form of stock available to the public besides common stock. It is a hybrid security that is a mixture of both bond and equity.

It usually has a fixed dividend payment and any dividend obligations to the preferred stockholders must be satisfied before dividend payments can be made to the common stockholders.

Unlike common stock, preferred stockholders usually has no voting rights and since dividend payments are fixed, they also do not get to participate in any capital gains.

However, in the event of liquidation, preferred stockholders are paid off before common stockholders.

Ready to Start Trading?

Open an account at OptionsHouse.com and get 100 commission-free trades + free virtual trading tool!

Your new trading account is immediately funded with $5,000 of virtual money which you can use to test out your trading strategies using OptionHouse's virtual trading platform without risking hard-earned money.

Once you start trading for real, your first 100 trades will be commission-free! (Make sure you click thru the link below and quote the promo code '60FREE' during sign-up)

Click here to open a trading account at OptionsHouse.com now!

Join the Discussions @ The Options Forum

Beginners Questions

Advanced Strategy Talks

RSS Feed Widget

Trading Ideas & Opportunities




Home | About Us | Terms of Use | Disclaimer | Privacy Policy | Sitemap

Copyright 2016. TheOptionsGuide.com - All Rights Reserved.