Preferred Stock is a form of corporate equity security that has properties of both an equity and a debt instrument. It is generally issued at a fixed value and carries dividends, but unlike common stock, holders of preferred stock have no voting rights in the company. The value of preferred stock is usually higher than that of common stock, and it is also callable by the issuing company—meaning the issuer can buy back the stock from investors at defined points in time. Preferred stock provides a steady yield to its owners, making it attractive for investors seeking reliable returns.