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Old 04-16-08, 03:39 PM
Fredledingue Fredledingue is offline
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Join Date: Aug 2007
Posts: 317
One explanation could be that prefered are little traded so they don't reflect market moves or common stock fluctuations.
They are often owned by institutional owners who never sell. I nobody sells them their price might be overvalued while the commons are solding off.

Prefered have, by law, more guarantees (partial or total refund) in case of bankrupcy.
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