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However, as Europe’s debt crisis continues to roil markets, investors need to be aware that preferred ETFs have heavy concentrations in the financial sector.“Preferreds are hybrid securities that have characteristics of both stocks and bonds, and are typically issued by financial institutions, utilities, and telecom firms. They make regular income payments and are rated by the major credit-rating agencies,” Timothy Strauts for Morningstar wrote. [Preferred ETFs Yielding Over 6%, But Come with Risks]... Continue to read.
I would like to say that preferred stock is the ownership stake an investor in a corporation is issued to provide evidence of their preferential rights.
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Nice blog. I would like to say that preferred stock represents a unique class of ownership that has a higher claim on the assets and cash flow than common stock, meaning preferred shareholders will generally receive a dividend that must be paid out before dividends to common stockholders.
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