common stock vs preference shares


What are the Preference Shares or Preferred Stock? Advantages and disadvantages, Features, Similarities and Differences

Think of preference shares as a special class of stock that grants investors certain privileges over common stockholders. The key benefit lies in dividends. Preference shareholders have the right to receive dividend payouts before any dividends are distributed to common shareholders. These dividends are typically fixed, meaning they represent a set percentage of the face value of the share.

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