Preferred stock is stock that pays out a fixed dividend to its owner. Dividends from preferred stock take precedence over common stock dividends (so owners of preferred stock get paid first and owners of common stock get paid out of whatever’s left).
Posts Tagged ‘preferred stock’
Preferred Stock is…
Wednesday, August 5th, 2009A Stock is…
Tuesday, June 16th, 2009A stock is a unit of ownership in a corporation representing a share in the corporation’s assets and profits. For instance, if a company has 1,000 shares of stock available and you own 100 of those shares, you have a 10% ownership of the company. Stocks are traded (bought and sold) on a stock market, and there are two types of stocks: common stock and preferred stock. Capital stock is the total ownership of a business and includes common stock and preferred stock.