Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

Common Stock vs. Preferred Stock: What Are the Differences?

You might be surprised about which one is better to buy.

By Jason Hall – Updated Oct 30, 2024 at 6:31PM

Key Points

  • Common stock offers unlimited growth but higher risk, ideal for long-term investors.
  • Preferred stock provides fixed dividends and less volatility, suited for income-focused investors.
  • The choice between stock types depends on an investor's risk tolerance and financial goals.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.