These securities represent an equity ownership in a corporation issued either in the United States or abroad.
They can have a fixed maturity, be perpetual, or have a fixed or floating dividend. Preferred shares are capital stock, which provides a specific dividend, that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of liquidation.
*Dividends paid on preferred stock are not guaranteed and can fluctuate from quarter to quarter. In addition, as with any investment there is the possibility of default risk on preferred stock. Default is slightly different with preferred stocks. Most preferred stocks can delay paying their dividends/interest without being in default.
Exchange Traded Funds (ETFs)
These are securities that track an index and can be traded like a stock. Because ETFs are traded on stock exchanges they offer daily liquidity and can be bought and sold at any time during the day.
American Depositary Receipts (ADRs)
ADRs are negotiable certificates issued by a United States bank and represent a specific number of foreign stocks traded on a U.S. stock exchange.
Initial Public Offerings (IPO)
IPOs offer the opportunity to participate in the first sale of stock by a private company to the public.