Offbeat Offerings: Preferred Stock
by Cara Scatizzi
Preferred stock is neither a typical, nor a highly exotic investment. Nonetheless, many investors have only a vague understanding of the security.
Preferred shares are a form of stock issued by corporations who also issue common shares. Once the shares are issued, they trade on an exchange just like common shares. Preferred stock differs from common in that it has a greater claim on dividends, but no voting rights.
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