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Community: Investing Wiki

Term Of The Hour

common vs. preferred: Original post by Cam Merritt of Demand Media In many ways, preferred stock in a company doesn't live up to its name because it isn't always preferable to common stock. Preferred shares usually don't have any voting rights, and they don't increase in value the way common shares can. But one instance in which preferred shares really are preferred is in the payment of dividends. When a company pays…

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