preferred shares
Dividend-priority equity securities
Preferred shares are a class of stock that receives dividends before common shareholders and has priority in claims on assets if a company liquidates.
In exchange for this preferential treatment, preferred shareholders typically lack voting rights.
The dividend is usually fixed, making preferred shares behave somewhat like bonds: The fund invests primarily in preferred shares for steady income.
- dividendCorporate profit share
- dividend yieldDistribution as price percentage
- certificateFormal written attestation
- preferred stockPriority-claim corporate ownership
- callableSubject to early redemption
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preferred sharescorporate bonds
Debt issued by businesses
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