Which is the Best Way to Use Preferred Stocks?

[kelly45 10]

The shares of the companies taken by the share holders are known as preferred stocks. I have many preferred stocks and want to use them to earn money. so tell me about the best way to use these type of stock in future.

[henryduncan12 10]

What is the difference between Preferred Stocks and Dividend Stocks?

 

I am familiar with dividend stocks but no idea about Preferred Stocks.

[straddle 10]

prefferred stock is Hybrid of stocks and bonds . Thy have priority over common shareholders on dividends and on assets in case of liquidation but they have no voting rights .

 

i think that that is the way they are going to bail out banks in Europe from the -ongoing- crisis. The banks will issue prefferred stock that the state will acquire , this way the state wont have voting rights and the banks will keep their freedom .

 

Not sure if prefferred stoxks is traded on stock exchanges .

 

PS Definition of preffered stock in Preferred Stock Definition | Investopedia

[Landser 10]

Not sure if prefferred stoxks is traded on stock exchanges .

 

Well, they are: Preferred Stocks: Closing Table - Markets Data Center - WSJ.com

AFAIK, these securities are usually chosen by traders who want to earn dividends.

[Savant 10]

You can get some info here Trading Preferred Stocks: Opportunity for Generous Yield and Quality Capital Gains - Seeking Alpha

[straddle 10]

I feel silly for not remembering that preferred stock is traded but with a different code .

 

I remember when a friend accidentally bought for a client the preferred and not the common stock and then he coulld not sell them (because of low volumes)

 

Prefferred stock usually have a fixed divident and may have a date that they be called (bought back) by the issuing compnay

 

Didnt read the article above, but how do you trade the a if is i fixed???

 

PS to answer the thread starter . You just keep the preferred stock and collect divident .

[brianrey 10]

preferred stock holders get preferential rights over normal shareholders after buying this stock. In case of liquidation, they have right over assets but they have no voting rights.