Common Stock vs. Preferred Stock,”COMMON STOCK:Variable return security (dividends may increase/decrease at management’s discretion), investors become partners, investors have right to vote, has the lowest position in terms of payoutPREFERRED STOCK:hybrid security (resembles both equity and debt), payments are fixed, investors are non-voting and non-participating

Common Stock vs. Preferred Stock,”COMMON STOCK:Variable return security (dividends may increase/decrease at management’s discretion), investors become partners, investors have right to vote, has the lowest position in terms of payoutPREFERRED STOCK:hybrid security (resembles both equity and debt), payments are fixed, investors are non-voting and non-participating

first claim to dividends”