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Published on:

20th Dec 2025

[SIE] 13, Preferred Stock Basics

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and CFP designation. He is passionate about opening up information to help everyone prepare better for financial certification exams. This episode covers content for the SIE Exam.

In this episode you will learn:

- The dual nature of preferred stock as a hybrid security, blending features of both stocks and bonds.

- How preferred stock provides a fixed dividend payment, calculated as a percentage of its par value.

- The concept of liquidation preference and where preferred stockholders stand in the payout order during bankruptcy.

- Why preferred stockholders typically do not have the voting rights that are granted to common stockholders.

- Common exam traps, including the inverse relationship between interest rates and preferred stock prices.


For more resources visit https://open-exam-prep.com/ and connect on LinkedIn at https://linkedin.com/in/chenran818

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Open Exam Prep
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Open Exam Prep: Mastering Financial Exams

The path to becoming a certified financial professional is known for its difficulty, and finding high-quality, accessible study material shouldn't be the hardest part.

Created by Ran Chen—an AI application enthusiast, Financial Advisor, and holder of the EA (Tax), Life Insurance, Series 6/63/65, and CFP® designations—this podcast was born from personal experience. Having navigated these challenging exams himself, Ran realized the need for better resources and created Open Exam Prep as a free solution for aspiring professionals.

Each episode breaks down complex major exam topics into clear, digestible lessons, covering everything from tax planning and estate strategies to retirement solutions and investment principles. Whether you’re studying during your commute, workout, or downtime, we are here to guide you—one question, one topic, one victory at a time.

Visit for more content: https://open-exam-prep.com/

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Ran Chen