Preferred shares hold advantages over common stock. One of the main advantages is that they may receive dividends when common stock will not receive dividends. Dividends are profits distributed to a shareholder. Preferred stocks usually cost an investor more than common stock. Should there be different types of stock? Should all stock be the same so all investors receive the same amount of earnings? Does the price difference change your answer?

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Different types of stock can have different advantages and disadvantages For example common stock m... View the full answer