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Stocks

Equities

Common stocks give voting rights and fluctuate with the company's performance, while preferred stocks offer fixed dividends and priority in liquidation. Understanding the difference between these two types of stocks is crucial in making informed investment decisions.

As we delve into the world of finance, it is essential to have a clear understanding of common and preferred stocks. These stocks symbolize a stake in the ownership of a company, and their characteristics differ significantly.

Common stocks provide shareholders with voting rights and are influenced by the company's performance. On the other hand, preferred stocks offer fixed dividends and are given priority in case of liquidation. It is vital to comprehend the distinction between these two types of stocks as it can greatly impact investment choices.

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