Convertible Preferred Stock

Preferred stock that can be converted into common shares under specified terms.

Why this matters to income investors

Conversion rights can link income value to common-share price changes.

How to use convertible preferred stock in your research

Read the security’s payment terms, seniority, maturity or call rights, and issuer credit condition. Compare the income at your purchase price with the amount you could lose if payments stop or the security is redeemed.

This material is general education and information, not individualized investment, tax, or legal advice.