Running head: PRINCIPLES OF FINANCE
Principles of Finance
PRINCIPLES OF FINANCE
Preferred and Common Stock
There are instances where a company will issue both preferred stock and common stock.
In such a case, it would imply that as the CFO, I want to increase the sources of financing for the
organization. Notably, most investors will be attracted to the preferred stock as compared to the
common stock because of perks such as voting rights. Given that, offering both types of stock
makes sense since it will generate more money for the company. As well, as CFO, one has to
assess the size of the organization before taking the step to issues stock (Pride, Hughes, &
Kapoor, 2014). In many situations, when the company is small, it o...
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