Stock isn't borrowing. If you buy stock, you are buying ownership of the company. Future returns are never promised. Not even future dividends are promised - the board of directors, elected by the shareholders, which would be you if you bought stock, can change the dividend at any time. The one thing I do criticize is the preferred vs common stock distinction - preferred is much more expensive and basically impossible for normal people to buy and issuance of new shares doesn't dilute the preferred stock. That's obviously predatory and should be illegal.