There are two primary means to earn income as a stockholder. The first method is dividend income

Question:

There are two primary means to earn income as a stockholder. The first method is income and the second method is earnings from capital gains. With respect to the investor seeking income, when the investor buys a stock from a with a primary focus to earn income they will typically expect a higher on versus preferred stock. Discuss the payment requirements of a versus preferred stock, in terms of which type of stock has a primary claim on distributions. Explain why the investor demands a higher rate.
Common Stock
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A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...