Preferred stock high risk investment
25 Oct 2017 Edward Ackerman and Angelo Bonvino are partners at Paul, Weiss, Rifkind, Wharton a private equity sponsor may allocate financing risk and the risk of an Control of the Issuing Company by Preferred-Stock Investors. A big risk of owning preferred stocks is that they are sensitive to interest rates. Because preferred stocks often pay dividends at average fixed rates in the 5% to 6% range, the share price falls