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Yah, preferreds are somewhere between true bonds and stocks. Which is, I guess, why they generally pay better than bonds. But they are not stocks---you are a lender and not a co-owner of the company.

Let's clarify that in bankruptcy, preferred stock holders do stand above common stock holders in the list of creditors. If there are multiple issues of preferred stocks, their relative standing is usually included in the prospectus.

However, preferred stocks are at the bottom of the list of creditors. Everyone else goes first. (Although some preferred stocks [thinking of Public Storage Company] are linked to specific assets.]

Read the prospectus carefully and be sure you understand the provisions before you invest.
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