Wednesday, October 24, 2012

Given The Risk, 11 Of 32 Trust Preferred Stocks Are Over-Priced

Now that we're in the final calendar quarter, too many preferred stock investors are either ignoring, or are unaware of, the risk associated with purchasing shares of trust preferred stocks (TRUPS) above a certain price in today's market.

Here in the final dividend quarter before the new regulations kick in, you would not expect preferred stock buyers to be paying more than the redemption price on any given day for TRUPS shares since the redemption price is what they are going to receive in cash in the event of a call....

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