Preferred stock is a type of hybrid security that combines features of both stocks and bonds. It typically pays a fixed dividend and has a higher claim on assets than common stock in the event of liquidation, but it does not have voting rights. Preferred stock can be a good option for investors who want a steady income stream and some protection against downside risk.
There are several ways to buy preferred stock. One option is to buy it directly from the issuing company. Another option is to buy it through a broker. If you buy it through a broker, you will need to open an account and fund it with enough money to cover the purchase price of the stock.
