Question

what's the different between common and preferred stock

Answer 1

The main difference is that preferred stock usually do not give shareholders voting rights, while common stock does, usually at one vote per share owned.

Preferred stock investors are usually guaranteed a fixed dividend in perpetuity. This is different from common stock which has variable dividends that are declared by the board of directors and never guaranteed.

In a liquidation, preferred stockholders have a greater claim to a company's assets and earnings. Preferred stock also gets priority over common stock, so if a company misses a dividend payment, it must first pay any arrears to preferred shareholders before paying out common shareholders.