Is there a difference between class A stocks and a preferred stock? or both are the same?
They are not the same. "Class A" is a class of common stock. Bob mentioned a few differences specific to Class A - here are some others:
- Preferred shares are paid off before common shares in the event of a bankruptcy or liquidation.
- Preferred shares pay a required, fixed dividend; dividends on common shares are optional and can fluctuate.
- Preferred shares are valued based on their dividend, not the value of the company.
- Preferred shares are often convertible to common shares, which indirectly benefits preferred shareholders if the value of common shares goes up enough.