1a. What is the preemptive right?

b. What are the major differences between common and preferred stock?

c. What is treasury stock? Why would a company want to buy back its own stock? Can treasury stock be resold at a later date?

d. What are some features that can be included within preferred stock?

e. What are various types of dividends that corporations can issue? What are the three important dates that are applicable to dividends? What happens on those dates?

f. What is a stock split? Why would a company want to split their stock? Is there a journal entry for a stock split?

g. What is the major difference(s) between a small stock dividend and a large stock dividend? Why would a company want to issue a stock dividend?

h) Opinion Question: In your opinion, is preferred stock or common stock better for an investor to have? Justify your answer.