Preferred Stock Definition

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	A Few Related Terms


	Common Stock Dividend Capital Gains Poison Pill


	Preferred Stock Term category: General Investing In 10 words or less: A separate type of stock that typically pays a higher dividend.


	Definition: A class of stock that usually pays a higher dividend than the common stock. However, preferred stock is less liquid and usually doesn't have voting rights. StockJargon Advice: People usually buy preferred stocks to take advantage of their dividends. Many preferred stocks pay dividends of 6% or more. These stocks also move in relation to the stock price, but often less noticeably. The alternative to investing in preferred stock is to invest in common stock. This is what most investors do.


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	The Five Rules for Successful Stock Investing by Pat Dorsey Beating the Street by Peter Lynch Wall Street Journal Guide to Understanding Money and Investments by Kenneth M. Morris Investing for Dummies by Eric Tyson


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