Preferred Stocks

Preferred stock: preferred share or simply a preferred, is a share of stock carrying additional rights above and beyond those conferred by common stock.

• a dividend amount that never changes, if the dividend is paid at all.And is paid before paying to common stock holders.
  
• precedence over shares of common stock when it comes to the distribution of profits and the liquidation (liquidate assets on bankruptcy) proceeds of a stock corporation
• superior voting rights generally, or special voting rights to approve certain extraordinary events
• If it is redeemable by the holder then it is to be excluded from the equity section and reported immedaiately after liability section in the statement of stockholders equity.

Preferred stock is usually issued with a $100 par (face) value. The dividend payments are a fixed percentage of the par. For example, if the par value of a stock share were $100 with a 6 percent annual dividend rate, the annual dividend would be $6 on that share. ZZZ had 1000 shares of 10 percent par $100 preferred stocks outstanding.


Common Stock:
The most usual and commonly held form of stock in a corporation.Common stock that has been re-purchased by the corporation is known as treasury stock.