Shirley, a friend of yours, is trying to understand the difference between common stock and preferred stock.

Question:

Shirley, a friend of yours, is trying to understand the difference between and preferred stock. Write a short memo to Shirley answering her questions. Make sure you review the privileges and rights of each shareholder.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...