Which of the following is typically true about common stocks compared to preferred stocks?

Common stocks typically do not guarantee dividend payments because they are subject to the company's earnings and the board of directors' discretion on whether or not to pay dividends. Companies may choose to reinvest profits back into the business rather than distribute them to shareholders as dividends. This flexibility can make common stocks more appealing in terms of potential capital appreciation, as they can benefit from increases in the stock's value.

In contrast, preferred stocks usually come with fixed dividend payments that are prioritized over those paid to common stockholders. This means preferred shareholders receive their dividends before any dividends are distributed to common shareholders, making option B the correct choice in distinguishing the characteristics of common stocks compared to preferred stocks.

The other options provided do not accurately describe the relationship between common and preferred stocks. Common stockholders typically do have voting rights, which is not the case for preferred stockholders, suggesting that options involving voting rights or dividend priorities may not accurately reflect the differences in stock types.