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An important part of working with preferred stock shares involves how you have to hold onto that stock for a longer period of time. You will get your original investment and any gains off of it back when the preferred stock reaches maturity. This is a brilliant point, but it will take a while for the preferred stock to reach maturity. You would have to wait about 30 to 40 years for that to happen. Obviously, this is not something you would use with day-trading in mind. If anything, it would simply be to give you a regular form of income that you can use for your future investing. This is beneficial in that you will still get the full value of the stock even if the preferred stock falls to zero. The full value will be paid out at maturity, thus giving you full coverage over the life of the stock. It is much different from common stock where you would get nothing if that stock actually fell to zero.
