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What Are Preferred Stocks?

By Matthew Frankel, CFP – Jul 3, 2025 at 10:55AM | Fact-checked by Frank Bass

Key Points

  • Preferred stocks provide fixed-income like dividends but lack long-term value growth.
  • They are riskier than bonds as they are subordinate in asset claims during bankruptcy.
  • Preferred stocks can be traded on exchanges and are accessible via ETFs or individual purchases.
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