SOME ASPECTS OF THE PERFORMANCE OF NON-CONVERTIBLE PREFERRED STOCKS.

The article focuses on some aspects of the performance on non-convertible preferred stocks. It is explained that there have been various discussions that preferred stocks combine some features that are inferior to those of bonds with some features that are inferior to those of common stocks. These discussions suggest that preferred stocks may represent an inferior class of investments relative to bonds and common stocks. The article used the market model from portfolio theory and a multiple regression analysis to investigate the holding period returns to preferred stocks.