Stocks

Preferred stock
preferred stock is hybrid in nature. It is similar to bond in some respects and common stock in some other respects. Like bonds, preferred stock is also a fixed income security. Preferred dividend are similar to interest payments on bonds in that they are fixed in amount and generally must be paid before common stock dividends can be paid. On the other side, preferred dividends can be omitted without bankrupting the firm, any many preferred stock issues have no specific maturity date.

Common stock
Common stock represent ownership in the corporation. Common stockholders are the true owners of the firm. Common stock does not have a maturity date.