Description
Pack of 500,000 preferred action (stock-option) of the Linework, Inc company (a Delaware company).
What are preferred stock ? Preferred stock refers to a class of ownership that has a higher claim on assets and earnings than common stock has.
Preferred stock is a different type of equity that represents ownership of a company and the right to claim income from the company’s operations. Preferred stockholders have a higher claim on distributions (e.g. dividends) than common stockholders.
Why buy preferred stock ? Preferred stock is attractive as it usually offers higher fixed-income payments than bonds with a lower investment per share. Preferred stockholders also have a priority claim over common stocks for dividend payments and liquidation proceeds. Its price is usually more stable than common stock.
Is it better buy common stock or preferred stock ? Common stock investments have a potentially larger reward, but also come with more risk because they’re exposed to the market. Preferred stock investments are a safer investment with fixed-income dividends, but investors may miss out on a share’s appreciation they would get with common stock.
