This is your Green Grosser, helping you gross green today. Now we are going to discuss Convertible Preferred Stock. All preferred stock dividends must be paid before any dividends on the common stock can be paid, hence the term preferred. Convertible Preferred Stock is preferred stock that can be converted, at a predetermined rate, into a company’s common stock. A convertible preferred stock owner receives a specified minimum divided but participates in the convertibility feature, if the common stock appreciates. The preferred feature represents a security, which has ownership in the corporation, usually without voting rights, and gives the holder a claim, before any claim, by the common stock holders on earnings and also generally a preferred claim over common stockholders on assets in the event of liquidation. Convertible preferred stock holders are usually seeking a fixed dividend and the right to participate in appreciation if the common stock rises above the convertibility features, which should be carefully checked prior to purchase. From GreenGrosser.com, this is your Green Grosser with your tip to help you gross green today.