Topic
Stock Types Long-term debts & Interest Rates
Instructions
- Compare and contrast the features of common stock and preferred stock.
- Describe the characteristics of long-term debt.
- Distinguish between floating rate and fixed rate corporate bonds.
Answer preview
There are two distinct stocks for company which are common stock and preferred stock. On common ground, both common stock and preferred stock make the owner enjoy some degree of ownership to the company. However, there are difference between the two stocks. First, if one purchases common shares, they enjoy the privileges of voting in the board of directors.
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