Common Stock versus Preferred Stock Corporations issue two general types of stock-common and preferred. Required: Answer the following regarding the major differences between common and preferred stock. Preferred stock grants certain privileges, usually involving , to its holders that are not granted to holders of common stock. Common stock confers Indicate whether the following are usually advantages of preferred stockholders or common stockholders: (1) Dividend preferences: (2) Conversion privileges: (3) Liquidation preferences: (4) Call provisions