| A Preferred stock list refers to the type of stock | | | | very much different from the cumulative ones, only |
| that is known to pay a set rate of dividend to its | | | | that they do not accumulate dividends. This means |
| holders before the regular stock holders have got | | | | that if shareholders miss out on some dividends, they |
| their share. This preference over other stock holders | | | | cannot expect to get them together with the next |
| is what gives these securities their name. One major | | | | dividends that will be declared. Any unpaid dividends |
| limitation with them is that, they carry no voting | | | | are simply lost. This category is also not entitled to a |
| rights and as such, the holders have no say over | | | | share in any profits. |
| how the company is run. | | | | Convertible preferred Stock is that category of |
| The preferred stocks are categorized into many | | | | shares which, as the name suggests, can be |
| types, which are defined by their own unique | | | | converted into a certain number of common stock |
| characteristics. They also have their own share of | | | | shares. The adjustable rate preferred stock is a |
| advantages and disadvantages. Cumulative | | | | category that holds varying interest rates. The |
| participating stocks pile all unpaid dividends and pays it | | | | dividends are payable according to the prevailing |
| out before the common stocks have got their share. | | | | interest rates and as such may earn more or less |
| They also participate in any additional company profit | | | | depending on market conditions. It is advisable for an |
| share that may arise or may be realized in the course | | | | investor to familiarize himself with all these factors so |
| of operation. | | | | that he can make an informed decision. |
| Non-Cumulative Participating Preferred Stocks are not | | | | |