A »Common stock typically grants shareholders voting rights and a share in the company’s profits via dividends, though dividends are not guaranteed. Preferred stockholders usually receive fixed dividends and have priority over common stockholders for dividends and asset distribution in a liquidation, but they generally lack voting rights. For example, if a company goes bankrupt, preferred stockholders are paid before common stockholders.

A »Common stock represents ownership in a company, offering voting rights and potential for long-term growth. Preferred stock has a higher claim on assets and dividends, typically offering a fixed return, but usually doesn't come with voting rights. The choice between them depends on an investor's priorities: growth and control or regular income and lower risk.