Why is preferred stock referred to as "preferred"?
# 1) - Why is preferred stock referred to as "preferred"? What are some of the features that are added to preferred stock to make it more attractive to investors? Would you select preferred stock or common stock as an investment? Why?
#2) - What are the different types of dividends that corporations may issue? When should a corporation pay dividends? Would you prefer a stock dividend or a cash dividend? Why?
This solution discusses characteristics of preferred stock in 675 words with references.
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- Stocks and Dividends.doc