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These “First Class” Securities Come With A Few Perks

Common. By definition, it sounds plain. Ordinary.

On the other hand, preferred has a much nicer connotation. It’s a descriptor indicative of an added perk or upgrade.

The same is true in the financial world. Common and preferred stocks both convey equity ownership in a business. But while the former grants voting rights, the latter carries something even better: preferential dividend treatment.

This post originally appeared at Investing Daily.