Difference between preferred shares and common stock
Key Takeaways The main difference between preferred and common stock is that preferred stock gives no voting rights Preferred shareholders have priority over a company's income, meaning they are paid dividends Common stockholders are last in line when it comes to company assets, which means Difference Between Preferred Stock and Common Stock • Both common stock and preferred stock represent the ownership interest in a firm, • Preferred stock is paid a fixed dividend on a periodic basis, • Preferred stock holders are paid dividends first before any dividends payments are