Survivor Options On Bonds by Pete Mitchell

Have you heard of the “survivor option”? How about a “death put”? These rather bleak terms reference a very useful choice for beneficiaries who inherit certain kinds of corporate bonds. This option has become increasingly common.

Preferred Stocks Presented by Pete Mitchell

Before I explain preferred stocks, let me explain dividends. Dividends are a part of the earnings that a corporation has that are paid out to it’s shareholders – usually on a quarterly basis. Let me give an example. Let’s say you own 1 share of xyz company, and that company is paying out a $5 annual dividend. Every quarter you would receive $1.25 for every share that you owned.