Common stock represents ownership in a company, giving shareholders voting rights and potential dividends.
Preferred stockholders have a higher claim on assets and dividends, often receiving fixed dividends before common stockholders.
Common stockholders can vote on company decisions. Preferred stockholders usually do not have voting rights.
Common stock dividends vary and depend on earnings. Preferred stock dividends are fixed and prioritized.
Preferred stockholders get paid first in asset liquidation, while common stockholders are last in line.
Choose common stock for voting rights and growth potential. Choose preferred stock for fixed dividends and priority in liquidation.