Preferred stock benefits
Whether a preferred stock behaves more like a stock or a bond depends upon its contractual features. For example, the price of a preferred stock that can be “converted” into common stock will move in line with the common stock price if the common stock trades at a value higher than the conversion price. Why you should avoid preferred stocks. This search often leads to preferred stock, And unlike with common stock shareholders, who benefit from any growth in the value of a company, the