Distinguishing Between Preferred Stock and Common Stock- Key Differences Unveiled

What are the differences between preferred stock and common stock?

When it comes to investing in the stock market, understanding the nuances of different types of stocks is crucial. Two of the most common types of stocks are preferred stock and common stock. While both offer ownership in a company, they differ significantly in terms of rights, risk, and returns. In this article, we will explore the key differences between preferred stock and common stock to help investors make informed decisions.