What is Preferred Stock?

[Suba]

Preferred stock is often referred to as special stock which is a combination of bonds and stock, so that preferred stock holders have the right to receive regular dividends first, even if the issuer makes a loss, preferred stock holders still have to be paid the same amount of money, which is very different from common stock. In general, preferred shares do not have voting rights at general meetings of shareholders. What do you think about preferred stock?

 

[kerryjoy]

How does the stock market really work because I hear people investing in stocks

 

[Suba]

How does the stock market really work because I hear people investing in stocks

If you want to invest in shares, of course you have to join a securities company or stock broker. After registering you will get an investor funds account which functions to deposit and withdraw your money to a bank account. After you deposit the funds or money you can buy the shares you like. .

 

[SHAHID987]

In PSX we don't having anything like this. I am active member of stock exchange of my country. We only get dividends when we hold some stocks for longer period of time.

 

[Suba]

Preferred shares are offered more to institutions than to retail traders/investors, because buying preferred shares requires large capital, very different from common stock. Both of these shares will also receive dividends, only the preferred stock has more priority in payments.