Preferred Stock a hybrid security it's like common stock-no fixed maturity. technically, it's part of equity capitaL. it's like debt-preferred dividends are fixed missing a preferred dividend does not constitute default, but preferred dividends are cumulativePreferred Stock A hybrid security: • it’s like common stock - no fixed maturity. – technically, it’s part of equity capital. • it’s like debt - preferred dividends are fixed. – missing a preferred dividend does not constitute default, but preferred dividends are cumulative