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What Is a Preferred Stock?

What Is a Preferred Stock? What Is a Preferred Stock?. Part of the series: Investment Terms & Facts. A preferred stock pays a higher dividend to shareholders, is paid first in the event of liquidation and may not be entitled to the participate in the overall growth of a business. Speak with a knowledgeable stockbroker to discuss the benefits of preferred stocks over common stocks with advice from a financial adviser in this free video on stocks.

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