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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: steve susko who wrote (14786)	7/11/2002 3:25:26 AM
From: Joan Osland Graffius	Respond to of 79000

steve, The preferred stocks that I have been buying are like bonds in that they are sold at a par - normally $25 at a set yield. They are traded on the stock exchanges. The bond holders have 1st rights to the assets of the corporation and the preferred holders have 2nd rights then come the equity holders. The preferreds trade at a premium or discount to par and right now the high yield preferreds of good companies are trading at a premium. One has be careful because some of these preferreds can be called so there is a risk of losing capital when paying a premium. Some preferreds have a date when they can be called. The preferreds are rated and you can go to S%P to see what risk the debt rating agencies have given the issues. Joan