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Preferred Stock

Similar to common stock, this security is piece of ownership in a company. The main distinction is that this type of stock does not carry voting rights, as common stock does. Preferred stockholders also get priority over common stockholders when it comes to being paid dividends (money paid out regularly to shareholders out of a company's profits) or a liquidation event ie. an exit.

Also, the dividends paid to preferred stockholders are often fixed.

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