Financial Education

Preferred Stock

Equity with priority dividends and liquidation preference; often no voting rights

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Fundamental

Preferred Stock

Equity with priority dividends and liquidation preference; often no voting rights

Definition

Preferred stock pays fixed dividends before common stock and has priority in liquidation. It combines equity features (no maturity) with debt-like characteristics (fixed payments). Often used by financial institutions.

Related Topics

#hybrid security #fixed dividends #priority claims #no voting rights

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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