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Is there a difference between class A stocks and a preferred stock? or both are the same?

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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.
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Class A shares can be structured in a variety of ways by the company. Traditional Class A shares are not sold to the public can't be sold, and have more voting rights. Preferred shares do not have voting rights.

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