Stocks

Many people love self-directed IRAs because of their ability to diversify their investments outside of traditional options. But in some cases, investors want to stick with tried and true strategies that they feel comfortable with. If that’s you, stocks are a good place to start your investment journey.

  • Earn tax benefits

    Grow your wealth on a tax-deferred basis with a self-directed IRA.
  • Choose your path

    Pick stocks that align with your investment and personal goals.
  • Take ownership

    Own a part of a corporation and take ownership in its financial growth.

Common Stock and Preferred Stock:
Your IRA Stock Options

Common Stock

Common stocks are the most typical shares issued by companies—entitling shareholders to participate in the growth/profit of the company, and include voting and preemptive rights.

Preferred Stock

Preferred stocks represent company ownership, but with a greater claim on company assets than common stocks and do not include voting rights.

Common Stock vs Preferred Stock

Common Stock Preferred Stock
Prices fluctuate Valued infrequently
Lower claim on earnings Higher claim on earnings
Voting rights No voting rights
Navigation Tip:

A stock exchange is a marketplace that facilitates equity trading. It can be electronic, over the counter, or auction-based.

How To Buy Common or Preferred Stock

Investors are encouraged to do adequate research or contact a broker/financial advisor, attorney or CPA, to determine if common or preferred stocks are an appropriate investment.

Once you have determined that common or preferred stock is suitable for you, it can be purchased with your Self-Directed IRA or other retirement accounts at Mainstar Trust. Click below to find out how to use Mainstar Trust to invest in common/preferred stock.

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