Stock Differences- Common and Preferred

There are many differences between preferred and common stock. The main difference is that preferred stock usually does not provide voting rights to shareholders.Common stock does provide shareholders voting rights, at one vote per share owned.

In addition to voting rights, preferred shareholders have priority over a company's income, meaning they are paid dividends before common shareholders. Common stockholders are last in line when it comes to company assets, which means they will be paid out after creditors, bondholders, and preferred shareholders.

Given these differences, of the two types of stock, which type of stock is best for:

1. A) the company in issuing the stock
2. B) the investor in issuing the stock.

In your example, explain your answers, using the differences in dividends, voting rights, and callability as a basis of preference.