Money market and capital market

A) Compare and contrast the characteristics of the securities of the money market with those of the capital market.

b) Compare and contrast common stock from preferred stock. What are the important characteristics of each from the INVESTORS' perspective? Why would an investor purchase one or the other? (Note that over 95% of stock is common and many - especially large tech firms - do not pay any dividends.)

Solution Summary

This solution is comprised of a detailed explanation to compare and contrast the characteristics of the securities of the money market with those of the capital market, compare and contrast common stock from preferred stock, and answer what are the important characteristics of each from the INVESTORS' perspective and why would an investor purchase one or the other.