Preferred Equity

Preferred equity is a type of investment in a company that provides investors with certain advantages over common equity holders. Preferred equity investors typically receive fixed dividends before any payments are made to common shareholders, offering more stability. In the event of liquidation, preferred investors are paid before common shareholders. However, unlike common stockholders, preferred equity often does not grant voting rights. Essentially, it combines features of debt and equity, appealing to those who seek regular income with less risk than common stock, but with limited control over company decisions.