Learn finance, accounting & investing: https://www.lumovest.com
Common Stocks vs Preferred Stocks | Similarities and Differences
In this video, we're going to explain the differences between common stocks and preferred stocks.
While they're both stocks in companies and entitle the investors to a claim on profits and assets, common shareholders have a higher return and risk potential than preferred shareholders. That's because common shareholders are subject to greater stock price movements and because preferred shareholders have a higher claim than the common shareholders.
Lumovest is an online school that teaches finance, accounting, and investing. We teach you how to analyze businesses and securities like how it's done at the world's top investment banks and private equity firms.