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I've read online and in the literature that apparently preferred stocks don't grow as much as common stocks. That makes sense, but Goog and Googl are closely tracking each other. I suppose Goog is technically considered as "common stock" but it neither has voting rights nor dividend payments. Can someone explain this situation to me? It doesn't make any sense.

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Preferred stocks are income securities that pay an annual dividend (usually quarterly but sometimes monthly or semi-annually) unless they are fixed/floating issues. Most are issued at $25. Most have no maturity date but they are callable at the issue price five years after the date of issue hence they 'don't grow' unless it's a convertible preferred.

GOOG and GOOGL are not preferred stocks and their correlation has nothing to do with preferred stocks.

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  • Is it a hard concept to interpret Goog as basically a preferred stock? Jul 7 '21 at 14:31
  • Go to any of the web sites that list all existing US preferred stocks and see if GOOGL is included in the list. It's not. What does that tell you? Jul 7 '21 at 16:44
  • It tells me that you didn't read the question. I know Goog is not a preferred stock, but you can interpret it as one like I've been saying. Jul 7 '21 at 16:49
  • You can interpret any planet that you see in a telescope as a star but none of them are stars. Feel free to interpret GOOGL as whatever you want but it's not a preferred stock in the real world. Jul 7 '21 at 17:14
  • Well why is that? It doesn't have voting which i thought to be the main characteristic of preferred stocks. Not only that, it doesn't have any dividends either making it essentially worthless Jul 7 '21 at 19:07

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