He noted the . Unlike common stock, where dividends can fluctuate or disappear at the board's whim, this preferred stock promised a specific percentage yield based on its par value (usually $25). The Execution

Buy immediately at whatever the current price was. Limit Order: Set a maximum price he was willing to pay.

Leo leaned back. He was now a "preferred" owner. He wouldn’t have voting rights like the common shareholders, but the next time the company distributed profits, his would be paid out before a single cent went to the folks holding the regular shares.

Being a cautious investor, Leo chose a for $24.85. He wanted to ensure he didn't get caught in a sudden price spike. He entered the quantity—200 shares—and hit "Review Order." The Confirmation

He clicked the button, and a trade ticket popped up. He had to make a choice: