what is preferred stock?

Preferred stock is a type of capital stock that has a higher claim on a company's assets and earnings than common stock. Preferred stockholders are entitled to receive dividends at a fixed rate before dividends are paid to common stockholders, and in the event that a company goes bankrupt, preferred stockholders have a higher claim on the company's assets than common stockholders. However, preferred stock does not typically have voting rights, unlike common stock.

Preferred stock can be a good investment for those who are looking for a source of steady, predictable income, as the dividends are usually fixed and paid on a regular basis. However, preferred stock does not have the same potential for appreciation as common stock, as the price of the stock is not directly tied to the company's performance.