What are the differences between preferred stock and common stock?
Stocks may be designated as commonthe most widely known formor as preferred. With preferred shares, holders have some priority over owners of common stock regarding dividends (and also in the distribution of assets if the company is liquidated or reorganized in bankruptcy). Preferred stocks generally do not have the voting rights that common shares do. Preferred shares generally have a stated dividend, while common stock dividend are based upon company performance.
A. Stocks may be designated as common the most widely known form or as preferred. With preferred shares, holders have some priority over owners of common stock regarding dividends (and also in the distribution of assets if the company is liquidated or reorganized in bankruptcy). Preferred stocks generally do not have the voting rights that common shares do. Preferred shares generally have a stated dividend, while common stock dividend are based upon company performance.
