Pecunia was on a rampage.

He'd begun bashing at his computer, tilting it, tickling at it, coaxing it like a craps player at a Vegas table, begging for stock prices to drop just a bit so he could buy. His terminal would not do as he asked, and he began his muttered cascade of hot curses, banging on the table, shaking his head, turning red. In short, he began taking out all his frustrations on his machine, and through it, on the office.

The office went quiet.

Over by the fax machine, Allison rolled her eyes. "Jeez Louise," she said. "Here we go."

Charles (The Bug) Deatherage affected a look of absolute boredom, and said nothing. Allison stared just a little longer at him, waiting for an answer, and that was precisely the effect that he wanted. They awaited the next spurt of vitriol, which would probably be directed at one of his assistants.

Allison had no way of knowing that The Bug was studying Pecunia's techniques. After all, thought The Bug, Pecunia is a partner. If it works for the partner, it should work for The Bug. The Bug should, after all, *be* a partner. Someone had once told him a story about the difference between French waiters and American waiters. A French waiter, it was said, wanted to be the very best waiter he could. An American waiter, on the other hand, wanted to own the restaurant. The Bug was every inch an American waiter.

Pecunia turned to an assistant. "Did we get the LOAs from the kids yet?" The assistant shook his head. "Then just forge the signatures." There was a pause, and the silence in the office became palpable. If before it was a blanket, it was now an electric blanket.

"I'm sorry, Mr. Pecunia. What did you say?"

Pecunia, now a bright shade of chartreuse, brought on by a combination of high anger and a cholesterol level of 289, turned on the assistant. "You heard me! Forge it! I need it right now! We've got to pass it through compliance."

Allison drew in her breath in a little gasp, and grabbed The Bug's arm. The Bug's heart pounded in his neck. The speakerphone at the Bug's desk sprang to life halfway across the office.

"Did someone say 'forge'?" blared the voice of Mrs. Petruno.

Charles, cooler than a cucumber, called across to the speakerphone. "Not at all, Mrs. Petruno," he said. "Forage for it! Meaning, 'find it.'"

Mrs. Petruno seemed not to hear. "It says here something about preferred stock. Is that better? Does the company treat its preferred stockholders better than its common stockholders?"

What does it mean for stock to be "preferred"?

1) Holders of preferred stock must receive their dividends before common stockholders receive any dividends.

2) Holders of preferred stock get higher dividends than common stockholders.

3) Preferred stock prices usually go up faster than common stock prices.

4) Dividends on preferred stock usually increase faster than dividends on common stock.

1) Holders of preferred stock must receive their dividends before common stockholders receive any dividends.

Preferred shareholders must receive their dividends before common shareholders can receive a dividend. Preferred stockholders are usually preferred in liquidation as well. That is, if the company dissolves, preferred stockholders receive proceeds before common stockholders. Preferred stock receives dividends at a fixed rate, often stated as a percentage of par value. For example, Duke Power has a preferred stock with a 4.50% dividend and a $100 par value, making the annual dividend $4.50. Preferreds trade at prices much like those of bonds because of the fixed rate. So preferred stockholders gain a fixed dividend, but give up the opportunity for dividend increases and significant price appreciation. (Some preferreds are convertible into common shares, so offer the opportunity for price increases as the price of the common increases.)

Utilities are the most prolific issuers of preferred stock. Preferreds are not nearly as widespread today as they once were.

Many kinds of preferreds exist. Some are cumulative, which means they must receive all of their dividends from the date of issuance before common can get anything. Preferreds can participate, meaning that they get extra dividends above their specified rates after common stockholders start receiving dividends.

Pecunia withdrew himself from his contagion long enough to nod, slowly, affirmingly, even appreciatively. The Bug had shown himself to be quick on his feet. He'd taken another baby step on his path to Power.

But, for reasons he didn't understand, his love for Allison was suddenly deeply painful. He wanted her, needed her, more than ever.

"You free for lunch?" he asked. "We could do it in front of my computer, while we watch 'As Passion Swells.'"

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