Question: 1. Describe the major differences between common stock and preferred stock. 2. Why are convertible securities more attractive to investors than simply holding a firm's

1. Describe the major differences between common stock and preferred stock.

2. Why are convertible securities more attractive to investors than simply holding a firm's preferred stock or corporate bonds?

3. Explain why investors look at a stocks P/E ratio rather than its price to determine if the stock is cheap or expensive.

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