Preference shares are company stock with dividends that are paid to shareholders before common stock dividends are paid out.
Common stock is a class of stock that represents ownership of a company. Holders of common stock, called shareholders, are entitled to: Voting rights to elect directors. Normally a shareholder can cast one vote for each share he owns.
Preferred stock. Generally, a class of corporate property that has a priority claim to assets and earnings over common stock in which dividends must be paid before dividends are paid to common shareholders.
Preferred shareholders have priority over company earnings. In other words, they receive dividends before common shareholders. Common shareholders rank last in terms of company assets. That is, it is paid after creditors, creditors and preferred shareholders.
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