Difference between preferred stock and non-voting stock?
Non-voting common stock does not give the investor a vote in how the company runs, neither does preferred stock, but it seems preferred stock has higher more consistent dividends and is somewhat more similar to bonds than common stock, and common stock has more capital gains, now what Id like to know is what is the difference between Non-voting common stock that allows it to have similar value to regular common stock. I always thought that common stock had a higher capital gains value solely based on the fact that it has voting power, which is competed for by shareholders, without this I would think common stock would be much less valuable in capital then preferred stock.
Mon Dec 07, 2015 11:26 pm
Jeb G New Member
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A late reply for sure. Clearly I'm no expert, Preferreds are complicated enough for the novice, that I only buy funds that specialize in them. I know that doesn't exactly answer your question.