[Series 65] 24, Preferred Stock Types and Features

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - That cumulative preferred stock requires issuers to pay all missed dividends (arrears) before paying common stockholders. - How convertible preferred stock offers the potential for capital appreciation by allowing conversion into common stock, usually for a lower dividend. - Why callable preferred stock benefits the issuer, who can redeem shares when interest rates fall, creating reinvestment risk for the investor. - That participating preferred stock allows holders to receive extra dividends beyond the stated rate during highly profitable years. - How preferred stock prices are sensitive to interest rates, moving inversely to rate changes, similar to bonds. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep