Preferred stock is less risky than common stock, therefore investors can expect less reward.

About Common Stocks Like common stock, preferred stock is sold by companies and is then traded among investors on the secondary market. If you are seeing this message, you may be experiencing temporary network problems. Preferred stock is less risky than common stock, therefore investors can expect less reward. Change location to view local pricing and availability. Stocks can be invested in for a variety of investment objectives, including current income, growth of principal or a combination of both. Our central message is that trading is hazardous to your wealth.

Dividends paid to the stockholders must be paid to preferred shares before being paid to common stock shareholders.