preferred shares

Preferred shares are a type of equity security that gives shareholders priority over common stockholders when it comes to dividends and asset liquidation. Unlike common shares, preferred shares typically provide fixed dividend payments and may have features such as convertibility into common stock or callable options. They are often considered a hybrid between debt and equity because they offer more stability than common shares, but usually do not carry voting rights. Preferred shares are commonly used by companies to raise capital while offering investors a more predictable income stream.