The primary distinction between preferred stock and common stock is that preferred stock operates more like a bond, with a fixed dividend and redemption price, whereas common stock dividends are less guaranteed and carry a higher risk of loss if a company fails. Of course, common stock has far more potential for stock price appreciation.

Preferred and common stock are two primary types of equity securities that represent ownership in a company, but they come with distinct features and benefits.

Common stockholders have voting rights, allowing them to influence corporate decisions at shareholder meetings. They are also entitled to a share of the company's profits through dividends, though these are not guaranteed and can vary. Common stockholders are considered residual owners, meaning they have the last claim on the company's assets in case of liquidation.

On the other hand, preferred stockholders enjoy priority over common stockholders in receiving dividends. They typically receive a fixed dividend, providing a more stable income stream. However, preferred stockholders usually do not have voting rights, limiting their influence on company decisions. In the event of liquidation, preferred stockholders have a higher claim on the company's assets compared to common stockholders.

In summary, while common stock offers voting rights and potential for higher returns, preferred stock provides a more secure income stream and priority in receiving dividends.