What is the difference between preferred stock and common stock?

Preferred stock is relative to common share. It mainly refers to the priority over ordinary shares in terms of the right to profit dividends and the distribution of residual property. Preferred shareholders do not have the right to vote and be elected, and generally have no right to participate in the company's operation, and preferred shareholders cannot withdraw their shares, but can only be redeemed by the company through the redemption terms of preferred shares, but can stabilize the dividends of shares.

The difference between preferred shares and common shares] 1. The difference in dividendsPreferred shares have fixed dividends, which do not fluctuate with the company's performance, and can receive dividends before ordinary shareholders; However, there is no upper and lower limit on the dividend income of ordinary shares, depending on the company's operating conditions and profits, the company's after-tax profits are distributed to ordinary shareholders in proportion to the proportion of shares after withdrawing the provident fund and paying dividends on preferred shares. 2. In terms of rights, the scope of rights of preferred shares is small, and the shareholders of preferred shares generally do not have the right to vote and be elected, and have no voting rights in the major operations of the joint-stock company; Ordinary shareholders generally have the right to attend shareholders' meetings, and have the right to vote, elect, and be elected. 3. Difference in the right of claim If the company's general meeting of shareholders needs to discuss the claim rights related to the preferred shares, that is, the claims of the preferred shares are prior to the common shares and secondary to the creditors.

Fourth, the general trend: if the ** falls sharply on the same day, it will be even worse to break the position, and don't chase if there is a limit.

Under normal circumstances, the psychological impact of **breaking** on the main force and chasing the disk is also huge, the determination of the main force to pull up is weakened accordingly, and the follow-up disk also stops chasing up, and the main force often has no choice but to ship immediately the next day.

When **in the band**, there are more opportunities for the daily limit, and there are more opportunities overall, so you can be bold in chasing the daily limit; When the ** band is weak, we should be especially careful and try to focus on ST shares, because ST shares and ** may go in reverse, and the other 5% increase will not cause too much selling pressure. If the trend is unclear during the consolidation, it is mainly based on the ** pattern, the morning and evening limit time, and the time-sharing chart performance.

Fifth, the first limit is better, don't chase the second limit in a row.

The reason is that because the profit market is too large in the short term, selling pressure may occur. Of course, this is not a certainty, and the leading stocks in the bull market or the stocks with great good news can be exceptional.

First, the meaning is different.

1. Ordinary shares: It is a kind of stock that changes with the change of corporate profits, is the most common and basic share in the capital composition of a joint-stock company, and is the basic part of the capital of a joint-stock enterprise.

2. Preferred shares: It is the first to enjoy the right of priority. Shareholders of preferred shares have priority over the company's assets, profit distribution, etc., and their risks are smaller. However, preferred shareholders do not have voting rights in the affairs of the company.

Second, the characteristics are different.

1. Characteristics of ordinary shares: The basic feature is that its investment income (dividends and dividends) is not agreed upon at the time of purchase, but is determined afterwards according to the operating performance of the issuing company. If the company's operating performance is good, the income of common stock will be high; Conversely, if the operating performance is poor, the return on common stock will be low.

2. Characteristics of preferred shares:

1) Preferred shareholders do not participate in the company's dividend distribution, have no voting rights and have the right to participate in the company's operation and management.

2) Preferred shares have a fixed dividend, are not affected by the company's performance, and can receive shares before common shareholders.

3) When the company goes bankrupt and the property is liquidated, the preferred shareholders have priority over the common shareholders over the remaining property of the company.

4)**According to the purchase entity, it can be divided into state-owned shares, corporate shares, public shares and foreign shares.

Third, the types are different.

1. Types of common shares:

1) According to ** bearer shares, it can be divided into registered shares and bearer shares.

2) According to whether the amount is indicated, it can be divided into face value** and no face value**.

3) According to the different investment entities, they can be divided into national shares, corporate shares, individual shares, etc.

4) According to the different issuance objects and listing regions, ** can be divided into A shares, B shares, H shares and N shares, etc.

2. Types of preferred shares:

1) Cumulative Preferred Shares and Non-Cumulative Preferred Shares.

2) Participating Preferred Shares and Non-Participating Preferred Shares.

3) Convertible Preferred Shares and Non-Convertible Preferred Shares.

4) Recoverable Preferred Shares and Non-Recoverable Preferred Shares.

1. Dividends.

Preferred shareholders with a fixed amount of dividends; For common shareholders, dividends change as the company operates.

2. Differences in the right to distribute residual assets.

Preferred shareholders, with distribution rights after the debtor; Shareholders of common stock, with distribution rights after preferred shares.

3. Distinction between pre-emptive options.

Preferred shareholders are not entitled to allotment rights; Ordinary shareholders are entitled to the same rights as their shares.

4. Different risks and returns

Preferred shareholders, with less risk and nothing to do with the company's operation or sale; Ordinary shareholders, riskier.

5. The performance of the withdrawal is different:

Preferred shareholders will sell back ** to the company in accordance with the contract; Ordinary shareholders can only exit by way of liquidation in the secondary market.

The differences between preferred stock and common stock are as follows:

1.Ordinary shareholders can fully participate in the operation and management of the company, and enjoy the rights of asset returns, participation in major reform decisions and selection of managers, while preferred shareholders generally do not participate in the daily operation and management of the company, and generally do not participate in the voting of shareholders' meetings, but in some special circumstances, for example, the company decides to issue new preferred shares, and the preferred shareholders have the right to vote. At the same time, in order to protect the interests of preferred shareholders, if the company fails to pay dividends within the agreed time, the preferred shareholders will restore their voting rights as agreed; If the company pays the dividends owed, the reinstated preferred stock voting rights are terminated.

2.Preferred shareholders have priority over common shareholders in the distribution of the company's profits and residual property.

3.The dividend income of ordinary shareholders is not fixed, depending on the company's profitability in the current year, but also depends on the specific distribution policy of the year, and it is very likely that the company decides not to distribute in the current year. The dividend income of preferred shares is generally fixed, especially for preferred shares with mandatory dividend clauses, as long as the company has profits to distribute, it should be paid to preferred shareholders according to the agreed amount.

4.In addition to the dividend income, the income of ordinary shareholders is also important in the secondary market; However, the stock price fluctuations in the secondary market of preferred stocks are relatively small, and there is less room to make profits by relying on the bid-ask spread.

5.Ordinary shareholders cannot request to withdraw their shares, but can only cash out in the secondary market; If agreed, the preferred shareholders may sell back ** to the company in accordance with the agreement.

Preferred Share Leasing and Sales Concept:

Preferred shares are usually predetermined to be guaranteed by common shares with their distributable dividends, and the dividend yield of preferred shares (for example, after the profit distribution of common shares is reduced to 0, preferred shares will not reach the dividend yield in terms of dividends), and preferred shares are actually a form of debt raising similar to shares.

Common Stock Concept:

Ordinary stock is a kind of stock that changes with the change of enterprise profits, is the most common and basic share in the capital composition of a joint-stock company, and is the basic part of the capital of a joint-stock enterprise.