Preferred and common stock

Two classes of share with different dividends and votes

In detail

Common stock carries a vote and a dividend that moves with results. Preferred stock is paid its dividend first but usually has no vote. What individuals trade on the market is almost always common stock.

Example

A preferred share may promise 5% a year while the common dividend can fall to zero.

Related terms

Voting right Dividend Stock

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For learning, not investment advice. Decisions are your own.