Please explain how Preferred Stock differs from Common Stock?
Preferred stock – A type of stock that pays a fixed dividend, and which has priority over common stock in the payment of dividends and liquidation proceeds. However, it typically carries no voting rights, may be callable at the company’s option and does not participate in the growth of the company’s earnings. The fixed income stream of preferred stock makes it similar in many ways to bonds. (NYSE: NNN_PA) Common stock – Securities that represent an ownership interest in a corporation. If the company has also issued preferred stock, both common and preferred have ownership rights. Common stockholders assume the greater risk, but generally exercise the greater control and may gain greater reward in the form of dividends and capital appreciation.
Preferred stock – A type of stock that pays a fixed dividend, and which has priority over common stock in the payment of dividends and liquidation proceeds. However, it typically carries no voting rights, may be callable at the company’s option and does not participate in the growth of the company’s earnings. The fixed income stream of preferred stock makes it similar in many ways to bonds. (NYSE: NNN_PA) Common stock – Securities that represent an ownership interest in a corporation. If the company has also issued preferred stock, both common and preferred have ownership rights. Common stockholders assume the greater risk, but generally exercise the greater control and may gain greater reward in the form of dividends and capital appreciation.
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- Please explain how Preferred Stock differs from Common Stock?
