# What are preferred stocks

**URL:** <https://community.trading212.com/t/what-are-preferred-stocks/2456>\
**Category:** 📬 Stocks & ETFs requests\
**Created:** [March 12, 2020, 8:39pm UTC](https://community.trading212.com/t/what-are-preferred-stocks/2456 "2020-03-12T20:39:24Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![CaptainDangernoodle](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/captaindangernoodle/32/1354_2.png) [@CaptainDangernoodle](https://community.trading212.com/u/CaptainDangernoodle)\
**Post date:** [March 12, 2020, 8:39pm UTC](https://community.trading212.com/t/what-are-preferred-stocks/2456/1 "2020-03-12T20:39:24Z")

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I’m new and was just researching companies and placing them on my watchlist and noticed some had more than one name on the market, and was wondering what the benefit of one type over the other is.  
Example BMW vs BMW3, VOW vs VOW3

Which ones are you guys buying?

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**Author:** ![chantal](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/chantal/32/12676_2.png) [@chantal](https://community.trading212.com/u/chantal)\
**Post date:** [March 13, 2020, 3:13am UTC](https://community.trading212.com/t/what-are-preferred-stocks/2456/2 "2020-03-13T03:13:12Z")

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Here is an explanation:

> **[Preferred Stock](https://www.investopedia.com/terms/p/preferredstock.asp)**
>
> Preferred stock refers to a class of ownership that has a higher claim on assets and earnings than common stock has.

Most traders buy common stock I believe.

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**Author:** ![MitchB](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/mitchb/32/744_2.png) [@MitchB](https://community.trading212.com/u/MitchB)\
**Post date:** [March 13, 2020, 11:23am UTC](https://community.trading212.com/t/what-are-preferred-stocks/2456/3 "2020-03-13T11:23:45Z")

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In the past I have gone with VOW3 over VOW due to higher volume and liquidity. I also went with BMW3 over BMW due to the dividend and it trading at a nice discount.

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**Author:** ![CaptainDangernoodle](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/captaindangernoodle/32/1354_2.png) [@CaptainDangernoodle](https://community.trading212.com/u/CaptainDangernoodle)\
**Post date:** [March 13, 2020, 12:20pm UTC](https://community.trading212.com/t/what-are-preferred-stocks/2456/4 "2020-03-13T12:20:39Z")

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Thank you for the info