How the World's Wealthiest People Get Rich and Stay Rich With Preferred Securities

Preferred securities are a type of hybrid security that combines features of both stocks and bonds. They offer investors a number of advantages, including regular income payments, priority over common shareholders in the event of bankruptcy, and the potential for capital appreciation. As a result, preferred securities have become a popular investment vehicle for the world's wealthiest people.

The Billionaires Secret: How the World's Wealthiest People Get Rich and Stay Rich with Preferred Securities

by Herbert Tabin

4 out of 5

Language	:	English
File size	:	14192 KB
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Print length	:	187 pages
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How do preferred securities work?

Preferred securities are issued by companies to raise capital. They are typically long-term investments, with maturities ranging from 5 to 30 years. Preferred securities pay a fixed interest rate, which is typically higher than the interest rate on bonds. However, preferred securities do not have the same voting rights as common stock.

In the event of bankruptcy, preferred shareholders have priority over common shareholders in terms of repayment. This means that preferred shareholders are more likely to get their money back if the company goes bankrupt.

Why do wealthy people invest in preferred securities?

There are a number of reasons why wealthy people invest in preferred securities. First, preferred securities offer a steady stream of income. This can be important for wealthy people who are looking for a way to supplement their other sources of income.

Second, preferred securities are relatively safe investments. They are less risky than common stock, but they offer a higher return than bonds. This makes them a good option for wealthy people who are looking for a way to grow their wealth without taking on too much risk.

Third, preferred securities can provide tax advantages. The dividends paid on preferred securities are eligible for the dividend received deduction. This can save wealthy people a significant amount of money on taxes.

How can I invest in preferred securities?

There are a number of ways to invest in preferred securities. You can buy them directly from a brokerage firm or through a mutual fund or ETF. If you are not sure which preferred securities to buy, you can talk to a financial advisor.

Preferred securities are a valuable investment vehicle for wealthy people. They offer a number of advantages, including regular income payments, priority over common shareholders in the event of bankruptcy, and the potential for capital appreciation. If you are looking for a way to grow your wealth, you should consider investing in preferred securities.

The Billionaires Secret: How the World's Wealthiest People Get Rich and Stay Rich with Preferred Securities

by Herbert Tabin

4 out of 5

Language	:	English
File size	:	14192 KB
Screen Reader	:	Supported
Print length	:	187 pages
Lending	:	Enabled

FREE