Category Part 2 (ENG)

Which best describes the difference between preferred and common stocks? Preferred stock allows shareholders to vote for

19.10.2022 Part 2 (ENG)  No comments

The first difference is that shareholder voting rights are only given to the holders of common stock. These voting rights give shareholders the power to vote for company directors, issue more shares, and accept a takeover bid. In short, preferred shareholders have no control over the future of the company, while common shareholders can exercise some control over it. Preferred stock is a share in a company that then offers stockholders fixed dividends. These fixed dividends are one of the primary reasons that many people opt for this stock when given the choice in a stock purchase agreement.

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