Fannie Mae (FNMA)

[ShortPutCall]

Preferred Stock
Investors view preferred stock as a hybrid of common stock and long-term bonds. Preferred stock always pays a dividend that the corporation must distribute before paying dividends to holders of common stock. Preferred stock dividends compete with long-term bond interest to attract income-oriented investors. Unlike common stock, preferred stock does not participate in the growth of a company -- preferred stock dividends remain fixed even as the corporation’s earnings grow. A corporation pays all stock dividends from retained earnings -- the accumulated profits of the firm. <<Copy and pasted from smallbusiness.chron.com. You do not have to say sorry, but acknowledge, you now know what I meant.