Preferred stock is a type of equity security that has features of both common stock and bonds. Preferred stockholders typically do not have voting rights like common stockholders, but they have priority over them in receiving dividends and assets in the event of liquidation. Preferred stock dividends are typically fixed, meaning that they are paid out at a predetermined rate, while common stock dividends are variable and dependent on the company's financial performance. Preferred stock may also have call provisions, which allow the issuer to redeem the shares at a predetermined price, and may have different classes with different rights and privileges. Preferred stock is often used as a way for companies to raise capital without diluting the ownership of existing shareholders.