The Preferred stock reference article from the English Wikipedia on 24-Jul-2004 (provided by Fixed Reference: snapshots of Wikipedia from wikipedia.org)

Preferred stock

Preferred stock is stock on which a fixed dividend must be paid before common dividends are distributed. It often does not mature and usually does not give the holder voting rights in the company.

The advantages usually associated with holding preferred stock are that when a company goes bankrupt and has to liquidate assets the preferred stockholders get paid first, if possible.

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