Preferred stock often has a preference over common stock in the distribution of assets in the event of dissolution of the corporation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually paying fixed dividends.

Common Stock

Equity security representing ownership interest in a corporation, with holders entitled to vote at company meetings and receive dividends.

Distribution

The process of delivering products or services from the production or service delivery point to the end consumer.