On short term basis, which investment would you like to invest out of Preferred stocks and ordinary stocks wit?
Assume that you are an investor and likes to invest in stocks. Currently you are having two options for investment; common stock or preferred stock. You are planning for short term investment. You expect that the return on both investments will be same, and they are equally risky as well. In addition, you read in the newspaper that interest rates will be increasing in the next six months. As a shot term investor, in which stock you would like to invest and why.
Investment best answer:
Answer by ALAN W
Are they same or different companies?
Preferred. I know you said that they are of equal risk, but preferred is a higher position than common stock.
Investment
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