Week 6: Stockholders Equity and the Statement of Cash Flows – Discussion
Stockholders Equity (graded)
There are two basic classes of stock that exist: common stock and preferred stock. Since more than one class of stock is available to investors, an investor must determine which class of stock they would prefer to invest in. Additionally, a company must decide which class of stock they would like to issue.
In this discussion post, discuss the following: What are the advantages and disadvantages of each? Imagine that you created a newly formed entity. Would you issue common stock, preferred stock, or both? Why?