is preferred stocks really debt?

[jasmine pradhan]

preferred stock is really debt in disguise, a kind of equity bond. preferred shareholders receive a stated dividend only, and if the corporation is liquidated, preferred shareholders get a stated value. often, preferred stocks carry credits rating such like of bonds.

[RadhaKrishna]

ya prefered stock are like debt but they are not totally dept like that bond because this have the feature of conversion also. this can be transformed into insider of a firm. ya one true thing is they have prior right over liquidation.