Preferred stock may not having the same ownership privileges as common stock, but preferred stock is offered a fixed dividend stream supported by a binding contractual obligation.
Preferred stock DOES have a fixed dividend stream, but does not carry a binding contractual obligation, as does debt.

Question

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Preferred stock does have a binding contractual obligation for payment of the fixed dividend, but it is not the same as the obligation in debt contracts. Debt contracts have a legal obligation for repayment of principal and interest, whereas preferred stock dividends are paid before common stock dividends but are not legally binding obligations.

Preferred Stock May Not Having the Same Ownership Privileges as Common