SM Preferred vs Common

A(n) ___ gives us an indication from a few sample corporations of how the entire market is doing.

The NASDAQ index is made up of ___ stock.

This ____ index is made up of 30 Blue Chip companies.

The ____ index is made up of 500 of the most popularly traded corporations.

Investment Bankers buy in the ___ market.

Stockholders buy in the ___ market.

The main reason that investors buy stock is to

• earn dividends

• sell for a gain

• earn dividends and sell for a gain

• to take risks

An example of ___ is when a 28 year old invests in risky stocks but when she ages she takes less risk.

Preferred Stock

• can vote

• earn guaranteed dividends

• is riskier than common stock

• has rapid changes in value

Common Stock

• is stable in value

• guaranteed dividends

• do not vote

• is riskier than preferred stock