Is common stock more risky than preferred?
Yes. But lots of common stocks aren’t that risky. You can help to hedge your bets by looking at the company’s track record, at its dividend payment record, and by carefully examining the company’s financial reports. Normally, the more stable the company and its earnings, the more stable its stock price will be. All of this information, as well as a buy, sell or hold recommendation, is available from most investment dealers’ research departments. This can be invaluable in helping you make your investment selection. What are my rights as a shareholder? As a shareholder, you are part-owner of the business and normally have a right to share in management decisions and to share in profits. Your voice in company affairs is expressed when you vote at the company’s annual meeting. You usually get one vote for each share you own. Profits are issued to shareowners at intervals in the form of dividends. Keep in mind that a company doesn’t have to issue dividends or make up for unpaid dividends on
