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Preferred stock usually carry no voting rights but may carry superior voting rights to common stock.^[1][2] Preferred stock may carry a dividend that is paid out prior to any dividends to common stock holders. Preferred stock may have a convertibility feature into common stock. Preferred stockholders will be paid out in assets before common stockholders and after debt holders in bankruptcy. Terms of the preferred stock are stated in a "Certificate of Designation".

Unlike common stock, preferred stock usually has several rights attached to it

The above list, although including several customary rights, is far from comprehensive. Preferred shares, like other legal arrangements, may specify nearly any right conceivable. Preferred shares in the U.S. normally carry a call provision^[4], enabling the issuing corporation to repurchase the share at its (usually limited) discretion.

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