Explore BrainMass
Share

Would common stock be higher or lower than preferred stock?

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Common stock usually has higher potential for changes in prices (up or down) which translate in higher returns or losses. Given this fact, would you expect common stock to be higher or lower price than preferred stock all else being equal?

© BrainMass Inc. brainmass.com September 26, 2018, 6:58 am ad1c9bdddf - https://brainmass.com/business/upper-and-lower-bounds-of-options/would-common-stock-be-higher-or-lower-than-preferred-stock-487839

Solution Preview

Common stock has a greater potential for gains and losses, and common stock is typically priced lower than preferred stock. Preferred stock is priced higher because it is preferred to common ...

Solution Summary

Would you expect common stock to be higher or lower price than preferred stock all else being equal?

$2.19