SM Preferred vs Common

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

The NASDAQ index is made up of (a)   stock.

This (a)   index is made up of 30 Blue Chip companies.

The (a)   index is made up of 500 of the most popularly traded corporations.

Investment Bankers buy in the (a)   market.

Stockholders buy in the (a)   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 (a)   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