Preferred Stock Buyers Beat High Prices By Paying Wholesale

Over the last two months there have been 13 new preferred stocks issued, 10 of which were introduced during July. In too many cases, by the time preferred stock investors knew of these new issues the market price had jumped well above par ($25 per share). The current average price of these 13 new preferred stocks is $25.53, well out of reach for most risk-averse preferred stock investors who avoid paying more than the par value for their shares.

But in all cases preferred stock buyers could have purchased these new shares very near or even below their $25 par value.

Purchasing shares below their $25 par value is mostly a matter of taking advantage of how new preferred stocks are introduced to the marketplace. By doing so, savvy preferred stock investors have been able to make below-par purchases all year long while others have been paying much higher prices...

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