Search results for: “risk”
Risk is the possibility of loosing money from an investment.  The term is often used when comparing the risk of an investment to its potential reward.  For example, the higher the risk, the higher the potential reward.
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What is Common Stock?

…profits, but common shareholders are not guaranteed a dividend. The Board of Directors votes on if and when you receive a dividend. You are also in the highest risk position….
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What is Preferred Stock?

…own Non-Cumulative Preferred Stock, the company doesn’t pay you any missed dividends. As a preferred shareholder, you have moderate risk. If the company goes bankrupt, preferred shareholders are not the…
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What’s the Difference between Common and Preferred Stock?

…are in the highest risk position. This means they have the greatest potential for losing money. Preferred shareholders have moderate risk. This means they have the potential to lose money…