If a company dissolves, preferred shareholders are paid out before common stockholders but after bondholders. Additionally, preferred stock is often callable, meaning that after a certain date ...

Common stock represents ownership in a company ... but that doesn't necessarily mean the stock trades for this amount. Rapidly growing companies may trade for several times their book value ...

In some cases, preferred shares are convertible, meaning they can be exchanged for a predetermined number of shares of common stock. This can allow investors to switch gears, so to speak ...

But those new to investing might be wondering "what is common stock?". Common stock is a type of security that gives you partial ownership in a corporation. As an owner of the corporation ...

But that doesn't mean they aren't, in many cases ... a higher claim on a company's assets and earnings compared with common stock. That means in case of bankruptcy or liquidation, preferred ...