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Preferred stock and common stock differ in that: *Source: Retired ICMA CMA Exam Questions. preferred stock has a higher priority than common stock with regard
Preferred stock and common stock differ in that: *Source: Retired ICMA CMA Exam Questions. preferred stock has a higher priority than common stock with regard to earnings and assets in the event of bankruptcy. failure to pay dividends on common stock will not force the company into bankruptcy, while failure to pay dividends on preferred stock will force the company into bankruptcy. preferred shareholders generally control the management of the company, while common shareholders have limited voting rights. preferred stock earnings are deductible for tax purposes, while common stock earnings are not
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