What Is Preferred Stock?
An equity security that pays a fixed, stated dividend and has priority over common stock for dividends and in liquidation. Preferred shares generally carry no voting rights and behave much like a fixed-income investment.
Preferred Stock across 2 exams
Preferred Stock appears on the following exams. Each defines it in the context candidates are tested on:
- SIE
- An equity security that pays a fixed, stated dividend and has priority over common stock for dividends and in liquidation. Preferred shares generally carry no voting rights and behave much like a fixed-income investment.
- Series 7
- An equity security that pays a fixed dividend and has priority over common stock for dividend payments and asset distribution in a liquidation, but typically carries no voting rights. It behaves partly like a bond because of its fixed income stream.