I think the answer is no. I think the purchasing company could simply buy out the common equity holders in order to own the company. They would then have the option of continuing to make the coupon payments on the preferred stock, or offer you money to buy it back. The amount would likely be determined by the market. For example, if your preferred stock had been trading at par, they may offer you 101 to buy it back. Of course, all of this could depend on the specific company, how it is structured, etc. I'm not certain on this, but I think what I've described above would be the most common situation... it will be interesting to see other answers. What I am certain of, is that preferred stock is more like a bond than it is like equity. It carries more risk than a bond because the dividend is optional for the company, however they cannot pay common equity dividends until they pay preferred shareholders first... it also hurts their credit, and thus their ability to raise money in the future, if they miss preferred stock payments, so they are kept honest through certain mechanisms. Bottom line, if you want to make equity like returns, you need to hold common equity shares.

No. We will be a 1% owner of the company owned by somebody else. Your stock might go up though.