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Common stock vs preferred stock

Discussion in 'Shares' started by jms, 5th Jan, 2008.

  1. jms

    jms Member

    Joined:
    3rd Jan, 2008
    Posts:
    24
    Location:
    Seven Hills NSW
    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

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    Preferred Shares