Reviewed by JeFreda R. Brown Fact checked by Suzanne Kvilhaug A preferred stock is an equity investment that shares many characteristics with bonds, including the fact that they are issued with a face ...

Preferred stock combines features of both equity and debt. Unlike common stock, preferred shares often offer fixed dividends ...

but it doesn’t usually stray particularly far from par value, which is the original share value based on which dividend yield is calculated. Overall, preferred stock can be thought of as a cross ...

The only time to consider a stock's par value is if you buy preferred shares, which provide a fixed dividend that's often stated as a percentage of the par value. For example, a preferred stock ...