Common stock and preferred stock
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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? Why?
As a corporation, would you rather issue preferred or common stock? Why?
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The common stock and preferred stock is examined.
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Common stock: Common stock is the capital stock which is the equity of the company and carries voting rights and entitled to get the share of success in the form of dividend and capital appreciation. Common stockholders are owners of the company who are entitled to dividend if the company earns profit and the dividend is recommended by the board
Preference shares: preference share is a capital stock which provides a specific dividend that is paid before any dividends are paid to common stockholders. Preference shareholders have preferential right at the time of getting dividend and at the ...
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