1891: Preferred vs Common Stocks: How Do They Differ by Amy Blacklock and Vicki Cook with Women Who Money
Optimal Finance Daily - Financial Independence and Money Advice
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Common Stock vs Preferred Stock
The value of common stock rises and falls based on market forces such as supply and demand. The value of a preferred stock, which is issued with a par value, is driven by interest rates. A company cannot pay dividends to common stock shareholders until all preferred stock shareholders claims have been satisfied. If establishing a quarterly cash flow stream is your goal, you might want to go with preferred stock.
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