How to Buy Wachovia Preferred Stocks
Compared to common stock, preferred stock is lesser known but offers features not shared by common stock. Owners of preferred stock usually receive a fixed dividend, which makes preferred stock attractive because it can deliver a stable income. Preferred shareholders also have a higher claim than common shareholders to company assets in the event of a liquidation. However, preferred shareholders do not have voting rights. Additionally, preferred stock tends to have a slower rate of appreciation than common stock.
Other People Are Reading
Instructions
-
Buying
-
1
Enter the ticker symbol for Wachovia preferred stock in your online broker's order form. The ticker symbol is WNA-P, and the full title of these shares is "Wachovia Preferred Funding Cp P.
-
2
Enter the amount of shares you wish to purchase. Due to restrictions on preferred stock, your broker may not be able to offer you as many shares as you want. If you receive an error when placing the order, check with your broker to determine how many shares they have to offer.
-
-
3
Select the type of order. A market order will execute the order as quickly as possible at the next available price. Wachovia preferred stock is less liquid than common stock. Liquidity refers to how easily a stock can be bought or sold. With a market order, the price you pay for the shares can be dramatically different from the original quote. Therefore, it is usually advantageous to use a limit order for preferred stock. Limit orders allow you to set a specific price at which you want the order to be executed and can prevent unnecessary risk. However, limit orders require higher commission than market orders.
-
1
Tips & Warnings
Traditionally only professional investors acquire preferred stock. It is important to recognize that these professionals have access to large amounts of capital and robust information sources.
References
- Photo Credit stock market analysis screenshot image by .shock from Fotolia.com
