Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Why would preferred shares have less potential for capital gain compared to common stock?
I once bought both preferred and common shares in a bankrupt company.  It is true that those preferred shares had less potential for appreciation than the common shares.  The reason is because the preferred shares were trading around $50 and had a face value of $1000.  This means that if the bankruptcy proceedings ended up finding enough assets to make the preferred shares whole, then the preferred shareholders would be paid $1000 per share and no more than that.  So if you bought the preferred shares at $50 and received $1000 per share for them, then you made a 1900% gain. But if the bankruptcy proceedings found enough assets to pay not just the preferred shareholders but also the common shareholders, then the common shareholders had the potential for a greater gain than the preferred shareholders.  The common stock was trading around 20 cents at the time, and if enough assets were found to pay $10 per share to the common shareholders, then that would have been a 4900% gain.  The preferred shares were capped by their face value, but the common shares had no limit on how high they could go.