Common stock vs. preferred stock
is so named because it is just that—common. Common stock isn’t generally accompanied by any special rights, preferences or privileges; it lacks the bells and whistles that are usually attached to
is that has special economic and control rights that are generally senior to the rights of the common stock. Determining exactly what those rights will be is determined by negotiation between the company and the investors. The most common of these rights include preferences, rights, anti- rights and special voting rights. The preferred shareholders will often negotiate additional contractual rights, such as , information rights and rights to in future financings. Learn more about liquidation preferences and preferred stock terms.