By Brian M. Reiser A preferred stock is a type of stock that combines certain features of common stock and certain features of debt. Like common stock, preferred stock can increase in value through capital appreciation over time. But, like debt, you can earn interest through fixed payments which helps you boost your income.
Let’s take a deeper look into what preferred stock actually is.
What Is Preferred Stock?
One of the most important differences between common stock and preferred stock is that shareholders of the latter have a higher claim to dividends or other distributions of assets. That means that before common shareholders receive dividends, preferred …read more