The difference between common stock and preference stock. Introduction: Common stock shows the total amount of money that the owner has in the business. Preferred stock is a share capital which has the special right as a comparison to equity to shareholders, like fixed dividend and preferential right in event of liquidation and payment of dividend.

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Chapter 19.3, Problem 5TP

Summary Introduction

To determine: The difference between common stock and preference stock.

Introduction:

Common stock shows the total amount of money that the owner has in the business. Preferred stock is a share capital which has the special right as a comparison to equity to shareholders, like fixed dividend and preferential right in event of liquidation and payment of dividend.

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