I understand that preferred stock pays out more in dividends, and is preferred in the case of bankruptcy. But why should it not appreciate as much as common stock?
If the company is worth $1m, with 100k shares, then a thousand shares of either preferred or common stock would amount to 1% ownership. If the company goes up by 100% to $2m, then I have gained $10k, being that I own 1% of a $2m enterprise with 100k shares. So why does it matter if my ownership is preferred or common?
Submitted September 03, 2021 at 12:26AM by BigBootyBear https://ift.tt/3yEUFCI
