Silicon Valley Self Regulation
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Preferred Stock

photo by Robert S. Donovan

photo by Robert S. Donovan

Preferred Stock

description

Preferred stock is an ownership stake that has a greater claim to assets of a company than other sorts of ownership stakes, like common stock. This means that anyone who holds preferred stock will be first in line once stockholders are able to collect dividends from a company. This sort of stock typically does not come with voting rights, and some preferred stock can be convertible (exchanged for a defined rate of common stock).

helpful resources

Preferred Stock selection at Investopedia