优先股和普通股的区别英文 优先股的英语

UnderstandingtheDifferencesetweenreferredStockandCommonStock

1.DividendDistriution

Thefirstandmostsignificantdifferenceetweenreferredstockandcommonstockliesinthedividenddistriution.referredstockholdershavetheadvantageofreceivingdividendseforecommonstockholders.Thisisecausereferredstockisanon-articiatingstock,whichmeansitsdividendincomeislimitedtoaredetermineddividendrate.Evenifthecomanyhasahighrofitduringtheeriod,thereferredstockholderscanonlyreceivethefixeddividendrate,andtheycannotshareintheremainingrofitswithcommonstockholders.Incontrast,thedividendsforcommonstockarenotfixedanddeendonthecomany'srofitailityanddividendolicy,whichcanleadtosignificantfluctuations.

2.RightsandScoe

Therightsandscoeofreferredstockholdersaregenerallymorelimitedcomaredtocommonstockholders.referredstockrimarilyofferstherighttoreceivedividendsandareferenceinthedistriutionofresidualroerty.Thismeansthatintheeventofliquidation,referredstockholderswilleaideforecommonstockholders.However,referredstockholderstyicallydonothavevotingrightsortheailitytoarticiateinthecomany'smanagementdecisions,whicharerightsthatcommonstockholdersossess.

3.arValueandMarketValue

Anotherdistinctionisthedifferenceetweenthearvalueandthemarketvalue.Thearvalueofastockisthefacevalueorthenominalvalueofthestock,whichisstatedonthecertificate.Forreferredstock,thisarvalueisoftenhigherthanforcommonstock.Themarketvalue,ontheotherhand,isthecurrentriceofthestockinthemarketandcanfluctuateasedonvariousfactorssuchasmarketconditions,comanyerformance,andinvestorsentiment.

4.OwnershiandVotingRights

referredstockholdersusuallyhavelimitedornovotingrights,whichmeanstheydonothaveasayinthecomany'sdecision-makingrocess.Commonstockholders,ontheotherhand,havevotingrightsandcanarticiateintheelectionoftheoardofdirectorsandothercororategovernancematters.

5.DividendRateandDividendayments

Thedividendrateforreferredstockisfixedandisoftensetatalevelthatishigherthanthedividendrateforcommonstock.Thisfixeddividendraterovidesalevelofincomeredictailityforreferredstockholders.Commonstockdividends,asmentionedearlier,arenotfixedandcanvaryasedonthecomany'serformance.

Conclusion

Insummary,themaindifferencesetweenreferredstockandcommonstockareintheareasofdividenddistriution,rightsandscoe,arvalueandmarketvalue,ownershi,anddividendayments.Understandingthesedifferencesiscrucialforinvestorsandshareholderstomakeinformeddecisionsaouttheirinvestments.Whilereferredstockoffersstailityandafixedincomestream,commonstockrovidesotentialforhigherreturnsutwithgreaterriskandvolatility.