Investing Terms
   401k Plan
   403 Plan
   529 Plan
   12b 1
   ADR
   Agency Bonds
   Annuity
   Asset Management
   Bear Spread
   Bond Yield
   Bull Spread
   Call Option
   Closed End Fund
   CMO
   Commodities Broker
   Convertible Bonds
   Covered Call Option
   Current Yield
   Custodial Account
   Debit Spread
   Defined Benefit Plan
   Defined Contribution Plan
   Diagonal Spread
   Dividend
   Eurodollar
   Fixed Annuity
   Foreign Currency Option
   General Obligation Bond
   Growth Fund
   Hedge Fund
   Horizontal Spread
   Income Fund
   Independent Broker
   Index Fund
   Index Option
   IRA
   Interest Rate Option
   Life Annuity
   Limited Partnership
   Margin Account
   Married Put
   Money Market Fund
   Mortgage REIT
   Municipal Bond Investing
   Mutual Fund Investment
   No Load Fund
   Nominal Yield
   Online Stockbroker
   Online Commodity Broker
   Online Real Estate Broker
   Option Spread
   Option Straddle
   P E Ratio
   Penny Stock Investing
   Portfolio Management
   Preferred Stock Investing
   Private Placement
   Put Option
   Put Bonds
   REIT Investment
   Repo
   Revenue Bond
   Secured Bond
   Short Sell
   SEP IRA
   Stock Option
   Stock Warrant
   Subordinated Debenture
   Tax Deferred Annuity
   Treasury Bill
   Treasury Note
   Treasury Bond
   Treasury STRIP
   Trust Account
   UGMA Account
   Unit Investment Trust
   Variable Annuity
   Yield To Maturity
   Yield To Call
   Zero Coupon Bond

   Home

Investing In Preferred Stock  

Preferred shares are sold in par value amounts and pay a fixed dividend to all stock owners. Many preferred stocks are convertible into common stock, and are callable by the issuing company. People who begin buying or investing in preferred shares enjoy a regular dividend payment and the ability to switch to common shares in the company. Oreferred Stock Investing is a fixed income strategy.

The preferred dividend rate is similar to a bond interest payment, although unlike debt payments - the dividend is not an obligation to the company.

Most of the corporations that issue this type of stock are income based companies. They have the income to make these dividend payments. Buying preferred stock in a company is an income strategy.

Most dividends are cumulative. This means that if a preferred share has a dividend rate of 6%, but the company only paid 4% one year, they will them owe you 8% going forward. The amount of the stock dividend that was missed, is made up. Although this is not an obligation. Buying preferred shares gives the person the chance to get the benefit of fixed income investing, but at a higher rate than a bond.

If the company goes out of business, preferred stockholders are paid ahead of common shareholders. Common shares get paid dividends only after preferred investors are paid.

Buying this type of stock or investing offers a fixed rate of return, but stockholders are still at risk if the company does not earn any income going forward. Unlike bond creditors, preferred stock investors cannot make claims on lost money if the company fails.

Professional Trading Programs - Devloped for beginners and seasoned traders in Forex and Options. Recommended and free full page of results and background.

Forex Trading Machine - Veteran trader Reveals How to Generate a 5 Figure income Trading the Forex Market with a Revolutionary and Unique Strategy. This incredible system is 100% mechanical, this means it requires ABSOLUTELY NO discretion, interpretention, or judgment. You will simply learn to follow strict rules: if A = B then do C! Since it is a PDFT strategy you will not use ANY type of indicators, the only thing you will need to know is the price of the currency pair you are trading. VIEW FREE Forex Info Here

Option Income Trading Course - These Videos Will Show You A Brand New *Better* Way To Trade Options For Income - Along With A Whole 'Slew' Of New Option Cashflow Strategies That Can Be Traded To Generate Income - Spending As Little As 15 Minutes A Day. This course is the result and culmination of 20 years of thinking, planning, learning and practicing the material you will receive.

- This latest edition of Preferred Stock Investing shows you how to screen, buy and sell the highest quality preferred stocks to earn above average dividend income while creating multiple downstream capital gain opportunities. Income investors already know about Doug K. Le Duís widely published preferred stock research articles and newsletters. Doug writes in plain English for non-experts. And now his latest preferred stock research is available in Preferred Stock Investing.

This completely updated edition includes Dougís latest research and updated charts and examples using real preferred stocks. This edition has been completely re-written to focus on the buying conditions that we will be facing over the next two years. Preferred Stock Investing starts at the beginning, explaining what preferred stocks are, the three different types and the pros and cons of investing in them versus common stocks, bonds or bank Certificates of Deposits. From there, Preferred Stock Investing uses actual preferred stocks to show you how to screen, buy and sell the highest quality issues. Also, through the book's website readers of Preferred Stock Investing are supported by a wealth of continuously updated resources, including a free monthly preferred stock research newsletter. Preferred Stock Investing lists all qualifying preferred stocks that have been issued since January 2001 and shows you the actual results that you would have had by following the preferred stock investing method described throughout the book. The information presented within Preferred Stock Investing makes it very clear that the highest quality preferred stocks represent one of the best investment opportunities for individual investors. Show less

Stock Option Trading Free blog for trading and investing.

Copyright American Investment Training, Inc.