Understanding the Differences Between Preferred and Common Stocks

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Episode 3137:

Amy Blacklock and Vicki Cook explain the key differences between common and preferred stocks, offering clarity on how each type fits distinct investment goals. While common stocks offer growth and voting rights, preferred stocks provide consistent income and greater claim to assets, making it crucial to align your choice with your financial strategy.

Read along with the original article(s) here: https://womenwhomoney.com/preferred-vs-common-stock/

Quotes to ponder:

"A share of common stock represents one share of ownership in the underlying corporation."

"The dividend yield can be calculated by simply dividing the dollar value of the dividend by the current stock price, times 100 for the percentage."

"Preferred stockholders get preference over common stock shareholders during distribution of profits or corporate liquidation of funds."

Episode references:

Standard & Poor’s: https://www.spglobal.com/ratings/en/

Moody’s: https://www.moodys.com/

Fitch Ratings: https://www.fitchratings.com/

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