crashed111 - 1. What are the advantages and disadvantages...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. What are the advantages and disadvantages of each and how do these affect your personal investment program? There are different reasons to choose one class of tock over another some of them are as follows: A common stock holder can benefit from the company by means of capital appreciation and dividends. Common stock option can be chosen over preferred stock as it gives the benefit to the holder of common stock to vote on company issues and in the elections of the organization's leadership team. Usually, one share of common stock equates to one vote. An investment in the common stock is profitable if the company is doing well but if the company is not doing well the stock prices can come down and can result in the loss of investment however common stockholders has the right to vote on common issues and they can resolve these matters. Preferred stock investment can be chosen over common stock as it is a more stable investment because it give a regular dividend which is not tied directly to the market as
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

crashed111 - 1. What are the advantages and disadvantages...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online