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Preferred
Stock |
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A
cross between common stocks and bonds. Preferred stockholders
are repaid before common stockholders (but still after
creditors) if a company goes bankrupt. They often pay a guaranteed
dividend for life. Frequently the issuing company has the right
to buy back their preferred stock at any time for a premium. One
downside of being a preferred stock holder is they usually come
with a lack of voting rights. |
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