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There are many differences between preferred and common stock. The main difference is that preferred stock usually does not give shareholders voting rights, while common or ordinary stock does, usually at one vote per share owned.
In normal parlance, only equity shareholders get a right to vote while preference shareholders have no right to cast a vote in the matters of the company. The reason behind this is that equity shareholders are owners of the company, in a sense, thus, their opinion is important in the company's decision making.
Common stocks represent shares of ownership in a business and offer investors voting rights in the company, which allow them to vote on key business factors such as electing the board of directors. These stocks aim to yield higher rates of return over long periods of time compared to preferred stocks.
When it comes to voting rights, only investors with common stock have them. Common stock offers investors voting rights, which gives them influence in the company. Preferred stock does not offer investors voting rights.
Preferred typically have no voting rights, whereas common stockholders do. Preferred stockholders may have the option to convert shares to common shares but not vice versa. Preferred shares may be callable where the company can demand to repurchase them at par value.