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Preferred stock
A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of common_stock stockholders, on earnings and also generally on assets in the event of liquidation. Most preferred stock pays a fixed dividend that is paid prior to thd common_stock dividend, stated_value in a dollar amount or as a percentage of par value. This stock does not usually carry voting rights. Preferred stock has characteristics of both common stock and debt.
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