what is an example of a preferred stock 
consider a company is issuing a 7 preferred stock at a 1 000 par value in turn the investor would receive a 70 annual dividend or 17 50 quarterly typically this preferred stock will trade around its par value behaving more similarly to a bond investors who are looking to generate income may choose to invest in this security the most common sector that issues preferred stock is the financial sector where preferred stock may be issued as a means to raise capital can you lose money on preferred stock like any other type of equity investment there are risks of investing including the loss of capital you invest into the company preferred stock have specific features different from common stock so they may perform differently however both investments are reflections of the performance of the underlying company should the company begin to struggle this may result in a loss or decrease in value in the preferred stock price 