Prospect Capital Ownership

Some institutional investors establish a significant position in preferred stocks such as Prospect Capital in order to find ways to drive up its value. Retail investors, on the other hand, need to know that institutional holders can own millions of shares of Prospect Capital, and when they decide to sell, the preferred stock will often sell-off, which may instantly impact shareholders' value. So, traders who get in early or near the beginning of the institutional investor's buying cycle could potentially generate profits. Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prospect Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For information on how to trade Prospect Preferred Stock refer to our How to Trade Prospect Preferred Stock guide.