What Is The Difference Between Common Stock and Preferred Stock Corporations

What Is The Difference Between Common Stock and Preferred Stock Corporations

The main difference between preferred and common stock corporations is that preferred stock gives no voting rights to shareholders while common stock does. In other words, the template given for the Articles of Incorporation makes the corporation a common stock entity. This is most desirable because the creator of the corporation will have all voting rights as 100% shareholder, whether it be 100,000 shares or just 100.