What is the difference between common shares and preferred shares?

 

The main difference between Preferred and Common stock is that preferred stock gives no voting rights to shareholders while common stock does. Preferred shareholders have priority over a company's income, meaning they are paid dividends before common shareholders.

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• Return on capital is not guaranteed in common stock, however, return is guaranteed in preferred stock at a fixed rate.

• Growth potential is high in common stock, while growth potential is low in preferred stocks.

 

YouTube Video:

Common Stocks vs Preferred Stocks | Similarities and Differences by Lumovest

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https://www.youtube.com/watch?v=XhT25hbZWW8

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* You can download full YouTube Video from here, file size 12MB *

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Click the Video icon: 

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