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What are the Two Types of Stock?

By Ken Little, About.com

Question: What are the Two Types of Stock?

Answer: The two types of stock are:

  • Common
  • Preferred
Common stock has voting rights (one per share) on important company issues and may receive dividends.

Preferred stock usually has no voting rights, but is first in line for dividends and first call on assets if the company is dissolved. Investors buy preferred stock for the dividend income.

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