Image source: The Motley Fool. The main difference between preferred stock and common stock is that preferred stock acts more like a bond, with a set dividend and redemption price, while common ...

Preferred stock is often described as a stock that acts like a bond. Investors value them for their steady income, not the potential market price increases.

Preferred stock is a hybrid security that has features of both common stock and corporate bonds. Preferred stock is a unique type of equity that grants shareholders priority over common ...

and this contributes to yet another difference between common and preferred shares: Preferred stock—like corporate bonds—is far less volatile than common stock because it provides owners with ...