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, not a direct asset or liability. Issuing common stock raises funds for a company without needing repayment like a loan. Common stock equity ...

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 ...