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Which most accurately describes the difference between common stock and preferred stock?

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Common stock and preferred stock are the two main types of stocks. Common stocks are issued to public to generate a stream of funding to expand the business. The common stocks are also referred to only as stocks.

Preferred stock on the other hand is a share of ownership in a public company.

The following most accurately describes the difference between common stock and preferred stock: Preferred stock pays out earnings at fixed, regular dividends

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