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Preferred stocks are a much better investment because the return is much greater then that of other stocks. Although they are often long-term, the yield is often worth it!

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12y ago

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Which stocks involve the most risk taking?

Investment in high risk stocks is a potentially lucrative and dangerous undertaking. These volatile, "high flyer" stocks move up and down the market dramatically. Examples of such stocks currently include CARBO Ceramics and Priceline.


What banks provide high interest bonds to customers?

High interest bonds are not issued by banks; they are issued by corporations that do not meet the standards of an investment-grade bonds. Like stocks, they are a corporate investment.


Why preferred stock is called hybrid security?

The phrase 'preferred stock' means stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights.Preferred stocks combine features of a stock and a bond, although they differ in many aspects from both. But since principally there are only two ways to invest--to be a part owner or to lend money--preferred stocks fall somewhere in between.Similarities with Common StocksØ Like common stocks, preferred stocks represent ownership in the issuing corporation. Ø Income from preferred stocks is called dividends, as is income from common stocks.Ø Common and preferred stocks are issued as perpetual securities, with no maturity date.Similarities with BondsØ Like most bonds, preferred stocks usually pay a fixed amount of income and fluctuate with interest rates. Many bonds are also issued with a call feature; when interest rates fall, a corporation can refinance high-coupon bonds and high-dividend preferred stocks with lower-cost debt.Ø Like bond it has no voting right.Ø Like bond preferred stock holders also can establish claim profit in the form of dividend before common stock holders.Since preferred stock posses both characteristic of common stock and bond that is why it is called hybrid security.


What is a high risk investment for high gain?

An investment that is subject to potential danger or hazard from a financial and/or technical standpoint. Although high risk investments have the potential to yield a lucrative return, it can also yield a substantial loss. A prime example of a high risk investment are high risk common stocks.


What are some investment options that involve trading stocks for less than a penny?

Investment options that involve trading stocks for less than a penny are known as penny stocks. These are low-priced stocks of small companies that trade for less than 1 per share. Penny stocks are considered high-risk investments due to their volatility and lack of regulation. Investors should be cautious and conduct thorough research before investing in penny stocks.


How to Pick an Investment Banker?

Before even vetting investment bankers, an investor must determine what kind of investment banker that he or she would be. The point of this exercise is to pick someone who has your same personality when it comes to investing. You will understand this person more and be much more interested in his or her strategy. For instance, if you have a high risk profile, then you want a high risk banker. If you like dealing in small cap stocks, then you want an investment banker that specializes in small cap stocks. Pick the investment banker that you would be if you had the time.


What are the benefits and downfalls of having pick penny stocks?

Penny stocks refer to stocks that are very cheap and be bought at a very cheap price, usually less than a $1 a share. The pros are if they go up, even a few cents, it is a big percentage of your investment. A con is that penny stocks are very high risk and have a high rate of failure.


Where should I invest in high beta stocks?

Investing in high beta stocks can be risky as they tend to be more volatile than the overall market. It's important to carefully consider your risk tolerance and investment goals before deciding where to invest in high beta stocks. Consulting with a financial advisor can help you make informed decisions based on your individual circumstances.


Why do you choose stocks or bonds?

Both stocks and bonds are investment options available for us as an investor. What we choose depends on what we want. If you want high returns and are ready to take high risk - Go for Stocks If you are satisfied with meager returns like 10% or so and are not willing to take any major risks - Go for Bonds


What is some good stock investment advice?

Good stock investment advice includes investing in a variety of stocks, be realistic about returns, be willing to hold on to a stock for along time and buy low, sell high.


What are the stocks double the investment in one year?

Identifying stocks that will double an investment in one year is highly speculative and depends on various factors, including market conditions, company performance, and economic trends. Historically, stocks in emerging industries or those experiencing significant breakthroughs may see substantial gains. However, investing in such stocks carries high risk, and it's essential to conduct thorough research or consult a financial advisor before making investment decisions. Always remember that past performance is not indicative of future results.


How can one get rich from buying penny stocks?

Penny stocks are cheap, because that's their value. However, many investors don't realize that penny stocks can grow to become high in value. The next time you create an investment portfolio, throw in a few penny stock and you will be surprised on the growth.