Series 82: 3.2.2. Preferred Stock

3.2.2. Preferred Stock

Preferred stock is an equity security that looks in many ways like a debt security. It is an equity security because it represents an ownership share in a company. Like a debt security, however, preferred shares generate income from a fixed, regular monetary payment rather than a company’s financial gains. Like a bond, a preferred stock’s market price fluctuates with interest rates and creditworthiness, rather than a compa