Preference share holders have preference over common stock holdres in dividend distribution as well as in terms of capital invested.
http://wiki.answers.net/Q/Whats the difference between preferred and common stock? http://wiki.answers.com/Q/Whats_the_difference_between_preferred_and_common_stock?
Preferred stock pays out earnings at fixed, regular dividends
Preferred stock pays out earnings at fixed, regular dividends
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Preferred stock pays out earnings at fixed, regular dividends
Dividends for preferred stockholders are often stated in advance and do not tend to fluctuate as much as those for common stock.
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Warrants are frequently attached to bonds or preferred stock as a sweetener.
Bonds have discounts and premiums and accrued interest. Preferred Stock doesn't.
Common stockholders generally are the only shareholders who are allowed to vote at shareholders' meetings, whereas preferred stockholders' shares generally convey no voting rights.However, preferred stockholders have guaranteed dividend rights that common shareholders do not have. Common stockholders have no right to any dividends at all, unless and until the Board of Directors, at its sole discretion, declares a dividend on common stock. However, even if a common stock dividend is declared, it cannot be paid until the preferred stockholders get the dividends that they are due on their preferred shares - hence the name "preferred" stock.
preferred stockIt is common stock not preferred stock
pay dividend before common stock
Dividend on common stock has to be more than dividend on preferred stock because of higher risk involved in equity investments.