Question:

What's the difference between common shares and preferred shares ?

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What's the difference between common shares and preferred shares ?

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  1. "preferred stok" is not stok, it is a lone=bond.

    It probablee is "senior" tu other bonds=at hed av the line.


  2. Voting rights is one difference.  Preferred usually has no voting rights.  Preferred shares get preference in dividends, if and when dividends are paid.  Preferred shareholders get paid dividends first.  Preferred shares have priority over common shares if the assets of the company are liquidated, as in bankruptcy.

  3. Difference happens only when dividend is issued and in case of bankruptcy  they get preference.

  4. common shares-ownership-right to vote

    preferred shares- higher prioritize than common, means when company goes belly up, they get their share before common. Also preferred gets arranged dividends. usually costs more than common. Also there are preferred convertibles, that's convertible to common.  have no voting power.

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