The difference between common and preferred stock is that preferred stock

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Preferred stock has more predictable income and is generally considered safer than common stock. While common stock may have greater potential for capital appreciation, it also carries more risk. Preferred stock is also more likely to pay dividends than common stock. Preferred stock is not issued more frequently than common stock, as both types of stocks are issued as needed by the company.

The Difference Between Common and Preferred Stock Is That Preferred