How to invest in preferred stock fidelity

## How to Invest in Preferred Stock on Fidelity

Preferred stock is a type of hybrid security that combines features of both stocks and bonds. It is senior to common stock in terms of claims on assets and earnings, but junior to debt. As a result, preferred stock typically offers higher yields than common stock, but lower yields than bonds.

There are two main types of preferred stock:

* **Cumulative preferred stock** pays dividends that accumulate if they are not paid. This means that if a company misses a dividend payment, it must make up for it later.
* **Non-cumulative preferred stock** pays dividends only if they are declared. If a company misses a dividend payment, it does not have to make up for it later.

Preferred stock can be a good investment for investors who are looking for a combination of income and growth potential. However, it is important to understand the risks involved before investing in preferred stock.

## How to Buy Preferred Stock on Fidelity

To buy preferred stock on Fidelity, you will need to:

1. **Open a Fidelity account.** You can open an account online or by phone.
2. **Fund your account.** You can fund your account by bank transfer, wire transfer, or check.
3. **Place an order for preferred stock.** You can place an order online, by phone, or through a financial advisor.

When placing an order for preferred stock, you will need to specify the following:

* **The ticker symbol of the preferred stock.**
* **The number of shares you want to buy.**
* **The type of order you want to place.**

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There are three main types of orders:

* **Market order:** A market order is an order to buy or sell a stock at the current market price.
* **Limit order:** A limit order is an order to buy or sell a stock at a specific price or better.
* **Stop order:** A stop order is an order to buy or sell a stock if the price reaches a certain level.

## Fidelity Preferred Stock Offerings

Fidelity offers a variety of preferred stock offerings. These offerings include:

* **Fidelity Preferred Stock Fund.** This fund invests in a diversified portfolio of preferred stocks.
* **Fidelity Adjustable Rate Preferred Stock Fund.** This fund invests in a portfolio of preferred stocks with adjustable interest rates.
* **Fidelity Floating Rate Preferred Stock Fund.** This fund invests in a portfolio of preferred stocks with floating interest rates.

## Conclusion

Preferred stock can be a good investment for investors who are looking for a combination of income and growth potential. However, it is important to understand the risks involved before investing in preferred stock.

If you are interested in investing in preferred stock, Fidelity offers a variety of offerings to choose from.

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