Preferredshares rank higher than ordinaryshares when it comes to paying out a company's assets.
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2.
Shareholders may nominally own such corporations but their share certificates are more like preferred stock than ordinaryshares.
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3.
Many, but not all, preferredshares produce qualified dividend income that is taxed at a preferential rate of up to 20% versus the ordinary-income rate of as much as 39.6%.
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