The Differences Between Bonds and Preferential Stocks

Bond prices go up and down in value according to what interest rates are doing. The opposite is true when interest rates go down. When a bond matures, it usually always matures at par. With preferred stock, if you buy preferred stock, you also sometimes, not all the time, you have the right to convert that preferred stock into common stock at a specific price. It's the common stock that really goes up a lot faster in value.