xxplozive asked:


When forming a corporation, what is a common practice for issuing preferred stock & common stock. Is there a specific % of one to the other ? Are there any benefits / drawbacks ?

Gertrude

boogsephine asked:


I’m also trying to find the four characteristics of Common Stock and Preferred Stock.

Harry

Helen R asked:


Collins Corporation plans to distribute $134,000 in dividends. It has outstanding 20,000 shares of 7%, $10 par value preferred stock (noncumulative and nonparticipating), and 60,000 shares of $2 par value common stock. How much will be distributed per share of preferred and common stock?

Stanley

ULooKWeiRD asked:


Let’s say .02 cents of dividends are to be paid on outstanding shares of common stock (18000 shares) and there are (2000 ) outstanding shares of preferred stock, do we just do .02 cents * 20000 for the amount of shares? I was used to just doing .02*commonstock outstanding but now preferred stock is involved and i’m confused.
Thanks!

Kim

Caronijack asked:


I received cash for accepting an early offer (before maturity date) to exchange my preferred shares for common stock. How do I report this on my tax return? Instead of just reporting it as regular income, is there any way I can use this payment to reduce my cash basis in the common shares?

Yvonne

Alan F asked:


Why would company issue preferred stock over common stock? It seems that preferred stock has a lot of great perks, so why would companies do that? Why not just issue common stocks? What companies would you expect to use it as a source of capital?

Florence