Preferred stock explained to kids

Preferred stock is a type of stock that has certain privileges over common stock, but usually doesn't have voting rights. That means preferred shareholders have a higher claim on assets and earnings than common shareholders, but they don't get to vote on company decisions. Preferred stock is also called "preference shares" or "preferred shares." Preferred stock is a type of stock that has certain privileges over common stock, but usually doesn't have voting rights. That means preferred shareholders have a higher claim on assets and earnings than common shareholders, but they don't get to vote on company decisions. Preferred stock is also called "preference shares" or "preferred shares." Preferred stock is a type of stock that pays fixed dividends and has priority over common stock in the event of a liquidation. The shares are often cumulative, meaning that if the company misses a dividend payment, it must make up for it in the future. Preferred stock is a type of stock that pays fixed dividends and has priority over common stock in the event of a liquidation. The shares are often cumulative, meaning that if the company misses a dividend payment, it must make up for it in the future. Preferred stock is less risky than common stock, but it also has less upside potential. That's because the dividend payments are fixed, so the share price doesn't fluctuate as much. Preferred stock is less risky than common stock, but it also has less upside potential. That's because the dividend payments are fixed, so the share price doesn't fluctuate as much. Preferred stock is a good investment for people who want a steady income stream, but don't want the volatility of common stock.