Preferred Stock

 A hybrid that is similar to bonds in some respects and to common stock in others.  Preferred dividends are similar to interest payments on bonds in that the are fixed in amount and generally must be paid before common stock dividends can be paid.  If the preferred dividend is not earned, the directors can omit it without throwing the company into bankruptcy.
Have more questions? Submit a request


Please sign in to leave a comment.
Powered by Zendesk