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For what reasons does an investor buy preferred shares of a company verses common shares?

For what reasons does an investor buy preferred shares of a company verses common shares?

Preferred share have a higher dividend than common stock. People who are more concerned about a steady income than growth, will often buy them.

Preferred pays a higher dividend then the common shares, and more stable then the common shares meaning preferred stocks are not as risky as common stock.

Preferred stocks are limited and basically first come first served. They also help supplement people who have social security or about to retire.

People invest in preferred stock for the dividend income. The dividends are also paid ahead of common stock dividends. They're also somewhat safer in the case of a company liquidation, over common stock. And corporations like preferred stock because the dividends are deductible against their taxable income.

Reasons:
1. Assured devidend, no matter how the company performs.
2. Preferential shares are priorotized over notmal once.
3. If the company is wound up, Preference shareholders' get the money first. Their accounts are settled before that of the ordinary shareholders, who are the last to get paid.
4. You can sell the preferential shares back to the company and no need to go to the markets.

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