Q: I have question about preferred shares. I noticed anew issue Brookfield Asset Management Inc. 4.50% Rate Reset Preference Shares, Series 4o. They cost $25. I understand one would get the interest rate for 5 years. But is the principal safe??? Can the principal increase decrease, and under what circumstances??? If ordinary shares go up or down do these shares follow suit. I don't understand these so your help in educating me about this type of product is appreciated.
Thank you
Thank you