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Preferred stock shows up all over the Series 7, and it can feel more complicated than it really is.

In this episode, we make it smaller.

We cover the preferred stock concepts you need to know for the exam, including:

• Preferred stock vs. common stock vs. bonds
• Fixed dividends and $100 par value
• Current yield
• Dividend priority and liquidation priority
• Cumulative vs. noncumulative preferred
• Dividends in arrears
• Participating preferred
• Adjustable-rate preferred
• Convertible preferred
• Callable preferred
• Conversion ratio and conversion value
• Call risk and reinvestment risk
• The biggest preferred stock traps you’ll see on the Series 7

The big idea:

Preferred stock is EQUITY.

It may act a little like a bond because of its fixed dividend, but preferred shareholders are owners — not creditors.

Remember the pecking order:

DEBT → PREFERRED → COMMON

And when you're calculating current yield:

Annual dividend ÷ Current market price

This episode is designed to help you learn preferred stock through repetition, music, examples, and rapid-fire review so the concepts stick when you sit for the exam.

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📚 About the Podcast

Real-world finance explained the way exams and real life actually test it.
Ideal for the SIE, Series 7, Series 65/66, and anyone who wants to actually understand money—not just memorize buzzwords.

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This podcast is for educational purposes only and is not a recommendation to buy or sell any security. Opinions expressed are solely those of the host.

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