1. The English name of preferred stock fund is: preferred stock fund.

A type of income mutual fund.

Specializes in investing in preferred stocks of listed companies.

This type of fund first focuses on fixed income, and may also obtain capital appreciation gains through the conversion of preferred shares.

2. Preferred shares are usually predetermined to be guaranteed by the dividends that can be distributed by ordinary shares.

The dividend yield of preferred stocks (for example, after the profit distribution of common stocks drops to 0, the preferred stocks will reach the dividend yield in terms of dividends), the preferred stocks are actually a form of debt financing similar to that of a joint-stock company.

Since the dividend rate of preferred stocks is set in advance (actually it is an upper limit), the dividends of preferred stocks generally will not increase or decrease according to the company's operating conditions, and generally cannot participate in the company's remaining profits as dividends, nor enjoy any benefits other than their own price.

Owner's equity, such as preferred shares, will be lost if the company becomes insolvent.