1. Common Stock: You can claim the rights of a corporation. If you hold even one share, meaning you have ownership and voting rights, you can attend the general shareholders' meeting.
2. Preferred Stock: You cannot attend the general shareholders' meeting and have no voting rights. However, when distributing dividends or residual property, there is a priority over common stock. If the company goes bankrupt and distributes property to shareholders, it is provided to preferred stocks first.
1. If the company goes bankrupt and is no longer operating, the remaining money in the company must be distributed to shareholders. That's when you distribute the money to the preferred stock holders first.
2. Common and preferred stocks move differently. In most cases, preferred stock prices are lower than common stocks.
3. Preferred stock dividends are relatively high
4. Preferred stock issuance (number of shares) and trading volume are usually low
5. Preferred stock may be attractive to those who want to pay dividends, but common stock may be more attractive to investors who are seeking profit-taking