Common stock vs preferred stock

Discussion in 'Share Investing Strategies, Theories & Education' started by jms, 5th Jan, 2008.

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  1. jms

    jms Member

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    The way I understand it, common stock is the same as "ordinary shares". That is, voting rights but the lowest priority in terms of ownership. That is, if the company is liquidated, common stock holders are paid last.

    Preferred stock is similar to common stock BUT has higher priority and therefore gets paid before common stock holders when a company is liquidated. ???

    Correct ?

    So when you buy and sell shares over ASX, they are "common shares".
    How do you obtain "preferred shares" ?
     
  2. Tropo

    Tropo Well-Known Member

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    Preferred Shares