1-What are the basic differences between preferred stock and common stock? That is, what are the typical features of pre...
1-What are the basic differences between preferred stock and
common stock? That is, what are the typical features of preferred
stock?
2- Distinguish between authorized shares and issued shares. Why
might the number of shares issued be more than the number of shares
outstanding?
3- What is the difference between the accounting for small stock dividend and accounting for a large stock dividend?
Homework Answers
Following are the differences:
- the dividend rate is fixed at the time of issue of preferred stock
- Preferred stock has preference for paying dividends
- Also preferred stock has a preference in the assets if the company go into liquidation
- preferred stock is redeemable
- preferred stock has no voting rights
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1-What are the basic differences between preferred stock and common stock? That is, what are the typical features of pre...
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