Preferred Stock
InvestingA class of stock with priority over common stock for dividends and assets in liquidation, often with fixed dividends.
Example
Example: Consider an investor building a $100,000 portfolio. Preferred Stock — a class of stock with priority over common stock for dividends and assets in liquidation, — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.