Financial Literacy Archives

What is Convertible Preferred Stock?

Convertible preferred stock are shares of preferred stock that convert into common shares at the request of the shareholder or by mandate.

A credit spread refers to the difference in yield between two bonds that are exactly the same but carry a different interest rate.

Capital stock plays an important role in both the formation of a company and the continued governance of that company once it’s public.

Every investment culminates in a close position, no matter how different the action of closing might look for each investor.

Investors can see pricing action, stock behavior and investor sentiment through an easy-to-read candlestick chart.

While a callable bond comes with a maturity date, the issuer can actually recall the bond before that date.

Investors can discover how much a stock is actually worth by using the Gordon Growth Model. Let’s dig deeper into this model.

If you’re looking for a fund with transparent pricing and potential for higher yields, a closed-end mutual fund might be the best approach.