Building a Stock Portfolio: Take a Long-Term View

Keeping track of shares
A record of your transactions and your securities held at Preferred appears on your regular statement of account. If your purchase was made in your street name or IRA account, a current valuation of your stock holdings will also be listed on your statement.

Today's investors can follow the market price and recent performance of stocks (and mutual funds) through the listings on the business pages of most daily newspapers. And there are many other sources of financial news.

But with all the information available, there's no substitute for the guidance of an investment professional. Because the market price of stock shares fluctuates on a daily basis, it can be tempting to second guess your purchases. If you take a long-term view to stock investing, you can resist temptation. To keep your portfolio growing, it's important to work out a long-term strategy for stock investing with your Preferred broker.

What about investments made elsewhere?
If you own stocks you've purchased from other firms, you are welcome to transfer any eligible stocks to your Preferred investment account. That process can be as easy as completing one simple form.

Your Preferred investment broker can also help you evaluate stocks that you already hold. From time to time, it's advisable to see that the investments you've purchased in the past continue to meet your current investment objectives. A portfolio review is a service we're pleased to provide. There is no obligation, and there is never a charge for consulting with us.

How often does my strategy need a check up?
Building a stock portfolio takes time and patience. The more actively you invest, the more frequently you should consult your Preferred investment broker. He or she can work with you to make regular additions to your holdings, and to evaluate the performance of your stocks. If the situation warrants, our investment professionals can also make recommendations about when to sell stocks.

We recommend that you consult with your Preferred broker at least semiannually. If you are a more active investor, you may want to review your strategy weekly or monthly.

Seeking Growth and Income
Through Other Equity Investments

Today's investors have access to an incredible amount of information about financial services. They're sophisticated-and they want a wide range of investment choices. In response to our clients' needs, we offer two other equity investment choices in addition to common stocks: preferred stocks and mutual funds.

Preferred Securities
Preferred securities are known for a feature of fixed-income securities: Most pay a fixed rate of dividend income quarterly or monthly. The owners of preferred stocks have priority over owners of common stocks with respect to dividend payment; however, their rights are subordinated to those of bondholders.

Most preferred stock dividends are cumulative, meaning if a firm suspends its dividend payments, common stock dividends cannot be paid until all preferred shareholder dividend obligations that were missed have been satisfied. This feature helps preserve the continuity of your income stream. Some-but not all-preferred stocks offer domestic corporations the opportunity to benefit from the tax law which allows a deduction of 70% of the dividend income received from taxable income. This incentive makes preferred stock attractive to corporations.

Stock Mutual Funds
Mutual funds from many leading national mutual fund families are available through Preferred. Each mutual fund has its own specific investment objective; fund objectives range from conservative to aggressive.

Investors have a dazzling number of choices for stock mutual fund investing: growth and income portfolios, value funds, international funds, sector funds, aggressive growth portfolios and utility funds, just to name a few.

With so many choices, we recommend that you consult with your Preferred investment broker to research the funds that interest you. Mutual funds are sold by a document known as a prospectus, which you can receive from your broker. Careful study and professional guidance can help you choose funds that fit with your investment objectives.

Preferred Securities Group, Inc.
5301 N. Federal Highway, Suite 150
Boca Raton, Florida 33487
1-800-909-9150
Tel. (561) 998-2170
Fax (561) 998-2177
Email: info@preferredsecurities.com

Member N.A.S.D., S.I.P.C.
Florida