The Difference Between Common Stock And Preferred Stock

Let has have a brief outlook on the difference between the common stock and preferred stock. The main difference you could point out at glance is that it serve more than that the common stock serves the traders. First of all the preferred stock owners distribute the dividend obtained by the company among themselves.

To add to its advantage the the preferred stock owner get the share as they hold it even if the company goes down preferred stock owner never frustrate as they get the share whatsoever the state of company . But taking common stock into account the share holders has to wait till the last minute with their mind predominated with fear as they hassle for money in case of company bankruptcy. In case of preferred stock the share holders are on the safer side as they get the money in any state the company are. The common stock holder cannot be cool in bear market as they fear whether they have loss or gain.

Moving on with next benefits, it is really advantageous one for preferred stock holders as they pay more amount initially, resting on the safer side they get the amount higher than the common stock holder as their payment received are predefined.