Answer :
Final answer:
Common stock is favored over preferred stock by most investors due to its potential for higher returns and ownership benefits.
Explanation:
Common stock is typically chosen over preferred stock by most people because common stock offers potential for higher returns. Common stockholders have voting rights and can benefit from capital appreciation and dividends if the company does well. Preferred stockholders, on the other hand, have fixed dividends but do not usually have voting rights.
Investors often prefer common stock due to its potential for growth and higher returns compared to preferred stock, which offers more stability but limited potential for capital appreciation. Additionally, common stockholders have a chance to benefit from the company's success through increased stock value and dividend payments.
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