> Shares under the same class have identical rights
------------
> The difference in rights leads to difference in value of each stock class
---------
> Every [[Shareholders |stock holder]] has equal rights within their class and the only difference between people is the amount of shares they hold
-----------
> The only time the business has to return the capital to stockholders is when the majority of them vote to liquidate part or total business
> 
# Types 

## Preferred stocks
Advantages :
 1. They are promised **limited** dividends (not guaranteed) 
 2.  During liquidation , after settling the liabilities , preferred stockholders are given their money back first before common stockholders

Disadvantages :
 1.  Mostly they don't get any voting rights, unless dividends haven't been paid for a period or more
 2.  They don't get more dividend than what was promised

## Common stocks
Advantages :
 1. Voting rights
 2. No cap on dividends. Once the preferred stockholders are paid their promised amounts , the remaining profit is shared among the common stockholders
 3.