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Investing Glossary:
Preferred stock
Copyright 2010,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Definition: |
| A security that shows ownership in a Corporation and gives the holder a claim, prior to the claim of common stockholders, on Earnings and also generally on Assets in the event of liquidation. Most Preferred stock pays a fixed Dividend that is paid prior to the Common stock dividend, stated in a dollar amount or as a percentage of Par value. This stock does not usually carry voting rights. Preferred stock has characteristics of both common stock and debt.
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