The Differences Between Preferred Stock and Common Stock

In common stock, you usually are able to vote on things. So whether it's the board of directors or other major decisions, you usually get to have a vote in that. With preferred stock, it generally does not carry voting rights with it. In common stock, when you get a dividend, it can be variable and it's dependent on the company's profitability. But dividends for preferred stocks, you just need to know, do not change. They are not variable. Common shareholders like you are generally entitled to dividends, but only after preferred shareholders have been paid.