DQW1-1 - ?Asa shareholder,?Explainwhy.Asacorporation,would ?Explainwhy

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What are some similarities and differences between common stock and preferred stock? As a  shareholder, would you want preferred or common stock? Explain why. As a corporation, would  you rather issue preferred or common stock? Explain why. Similarities between common stock and preferred stock are that shareholders both contribute  capital, intended for use in the company’s business activities, and both forms of stock receive  dividends. Differences can vary greatly depending on the entitlements and restrictions  associated with the terms of the stock purchase.  Usually, common stockholders are the initial investors in a business and are often the principles  and/or board members. Common stockholders are entitled to net profits made by the company  and are given voting rights. Preferred stockholders aren’t usually given voting rights, they are commonly assured a return on 
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This note was uploaded on 08/14/2011 for the course ACCT 423 taught by Professor R.becksted during the Spring '09 term at University of Phoenix.

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