Common Stock vs. Preferred Stock

Anonymous
timer Asked: Aug 27th, 2014
account_balance_wallet $5

Question Description

If a firm offers both preferred stock and common stock, which would you rather own? Explain your reasoning

Tutor Answer

whgrab
School: Purdue University

Preferred stock because preference of dividend and principal amount. Here dividends are paid before common stocks. Preferred stock is more secured

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Review

Anonymous
Goes above and beyond expectations !

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