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Because of the strict
requirements of the CDx3
Selection Criteria (see Question
#2 for three examples), CDx3
Preferred Stocks are low risk,
but pay a much higher fixed
dividend rate.
You can sell CDx3 Preferred
Stocks any time you want to. In
fact, Preferred Stock
Investing teaches you how
and when to sell them for a
profit (capital gain). And there
are no minimum investment
requirements with CDx3 Preferred
Stocks – one share costs about
$25 and you buy them on the
stock exchange like any other
stock.
Remember, though, that you will
pay a commission fee of about
$10 (using an online brokerage
account) when you buy, and again
when you sell, a CDx3 Preferred
Stock. So, do your math and be
sure you are purchasing enough
shares (at about $25 each) to
make it worth your while.
There are other differences,
too. While the issuing company
of a CDx3 Preferred Stock is
legally obligated to many
controls designed to protect
you, the investor, CDx3
Preferred Stocks are not
insured. |
