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Preferred stocks

Summary

  • A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common stockholders, on earnings and also generally on assets in the event of liquidation. Most preferred stock pays a fixed dividend that is paid prior to the common stock dividend, stated in a dollar amount or as a percentage of par value.

 

Soundex: P616 ( P616 S32 )

Metaphone: PRFRTSTKS

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