Disadvantages of investing in preferred stock include the fact that they are last to be paid in case of bankruptcy usually a lower dividend yield than common equity. no change in the share price if market interest rates change. the fact that dividends are fixed even if the financial condition of the firm improves. uncertain cash flows from dividends. ows from div

Disadvantages of investing in preferred stock include the fact that they are last to be paid in case of bankruptcy usually a lower dividend yield than common equity. no change in the share price if market interest rates change. the fact that dividends are fixed even if the financial condition of the firm improves. uncertain cash flows from dividends