Stock Market Investors » Glossary of Stock Terms » What is a Preferred Stock?

What is a Preferred Stock?

There are many classes of stocks. One of them is preferred stocks. This type of stocks is usually bought by investors that are looking for a stream of income. As the name of these stocks implies, they give certain rights to their holders that are not found in common stocks. One of the rights is that preferred stock holders are the first in line when dividends are paid.

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