MANAGEMENT

Detailed explanation-1: -Key Takeaways. 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.

Detailed explanation-2: -Preferred typically have no voting rights, whereas common stockholders do. Preferred stockholders may have the option to convert shares to common shares but not vice versa. Preferred shares may be callable where the company can demand to repurchase them at par value.

Detailed explanation-3: -Common stocks represent shares of ownership in a business and offer investors voting rights in the company, which allow them to vote on key business factors such as electing the board of directors.

Detailed explanation-4: -Preferred stock generally doesn’t carry voting rights. It’s issued by a company to raise capital without jeopardizing the controlling interests of the common stockholders.

Detailed explanation-5: -Common stock ownership always carries voting rights, but the nature of the rights and the specific issues shareholders are entitled to vote on can vary considerably from one company to another.