The paper explores the differences between preferred and common shares, focusing on their definitions, characteristics, pros and cons for investors, reasons companies issue them, and their respective risk and return profiles.
Preferred shares are ideal for income-focused, risk-averse investors and help companies raise capital without losing control. Common shares suit investors seeking growth and influence in corporate governance. The choice between the two depends on financial goals, risk appetite, and strategic needs.
Read the full document here: Preferred vs. Common Shares.pdf
