What is a preferred stock

[sunshine]

What is a preferred stock and what is equity share? Pls explain

[heyjude]

preferred stock is the one that has priority over the common stock and if the company goes bankrupt the preferred stock holders will get paid first.

[Canadian]

Preferred stock has precedence over common shares in terms of dividends and liquidation, and has its own terms agreed upon the company issuing the preferred shares and the investor. In most cases preferred stocks don’t have voting rights. Some preferred stocks can be converted into common shares, and this is defined in the preferred stock terms, which can be found in the preferred stock certificate of designation.