Before investing, we must know stocks based on claim rights such as Common Stock and Preferred Stock. Preferred shares give privileges to their holders by prioritizing receiving dividends in a fixed and limited amount, while ordinary shareholders receive shares according to the size of the profit and the percentage of profits received according to the ownership of the number of shares. When the company is liquidated, preferred stockholders will receive in advance the sale of the company's assets.
Which do you prefer to invest in Common Stock or Preferred Stock?
- Thread starter Suba
- Start date
I don't know there are different types of stocks. Thanks for sharing such wonderful information. From what you explained, preferred stock is by far more better than common stock. That means that preferred stock is likely to be more expensive.
I prefer to invest in the preferred stocks after studying the stocks critically.
