Peferstock means

Hello,

Preferred stock means Preference equity Shares.

1. As the name suggests, they have preference over common stock.
2. If dividends are paid, they are paid in regular intervals.
3. During liquidation, Preference share holders are paid first.

Commom stock means normal Equity shares.

1. Dividend payment is not compulsory. Hence, they may not even be paid dividend at all.
2. During liquidation, Equity share holders or the Common stock stand last in line and hence they will be paid only when the others have been fully paid off.

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If distinction is made between shares and stocks, then:

Share - one individual unit.

Stock - total number of units(shares) held by a person in a company.