The Risks of Preferred Stock Portfolios Form

Instructions and help about The Risks Of Preferred Stock Portfolios

preferred stock can be different from common stock in a number of ways and in this video we're going to discuss some of the characteristics that can make preferred stock really really unique so first thing is to understand is preferred stock comes in a lot of different flavors so one firms preferred stock might have completely different features than another firm stock in a matter of fact the same firm might have multiple classes of preferred stock so class 1 and then class 2 might be completely different even though it's the same firm that has both both outstanding right so you class one for example could be convertible and then class two could be callable and and there these are different features different types of preferred stock that different people hold but it's the same firm so let's get into specifically what some of these these features are and and one is preferred stock is typically cumulative and cumulative is basically saying that preferred shareholders are owed a dividend