Does preferred stock give shareholders voting rights?

Preferred stock usually does not give shareholders voting rights. Common or ordinary stock does, usually at one vote per share owned. An important difference between preferred and common stock is that preferred stock shareholders have priority over a company's income, meaning they are paid dividends before common shareholders.

What rights do preferred shareholders have?

Preferred shareholders may have certain additional rights, such as the ability to convert their preferred stock into common stock or participate in any potential upside if the company is sold or goes public. Convertible preferreds, says Aran, "can be converted into common shares after a certain date if the stock is at or above a target price.

Do preferred stock shareholders have priority over a company's income?

An important one is that preferred stock shareholders have priority over a company's income, meaning they are paid dividends before common stock shareholders. They are also paid first if a company is liquidated. Preferred stock usually does not give shareholders voting rights. Common or ordinary stock does, usually at one vote per share owned.