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While preferred stocks can offer more stable dividend payouts than common stocks, they still carry some risks, so don’t put all your eggs in one basket.
Yes, in some cases, preferred stocks come with a conversion option, allowing you to trade them for common stocks if the time is right.
Owning preferred stock usually means you have the right to receive dividends and sometimes voting rights, depending on the company's rules.
Preferred stocks give shareholders a better chance at getting dividends before common stocks, kind of like having a VIP pass when it comes to payments.