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educationDec 21, 20253:17pending

[SIE] 13, Preferred Stock Basics

Open Exam Prep

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About this episode

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the SIE Exam.

In this episode you will learn:

- The dual nature of preferred stock as a hybrid security, blending features of both stocks and bonds.

- How preferred stock provides a fixed dividend payment, calculated as a percentage of its par value.

- The concept of liquidation preference and where preferred stockholders stand in the payout order during bankruptcy.

- Why preferred stockholders typically do not have the voting rights that are granted to common stockholders.

- Common exam traps, including the inverse relationship between interest rates and preferred stock prices.


For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818

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[SIE] 13, Preferred Stock Basics

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