Preferred Stock/Convertible Bond ETFs
Preferred stock, also known as capital stock, is separate from common stock, because it is pays dividends before any funds are paid to common stock holders. In addition, preferred stock dividends do not fluctuate. Preferred stock owners maintain general benefits of having partial ownership over a company.
Since it is a relatively new concept, many investors are trying their hand at convertible bond ETFs for the first time. At any time, investors can exchange covertible bonds for specific shares of an issuer or common stock holders. Therefore, these bonds are considered extremely safe as a result of their potential equities.
