I'm having difficulty on how to reply to my peer's assignment.

This is my peer assignment paste below:

Stocks are securities that indicate ownership in a company. The two popular stocks are called Common Stocks and Preferred stocks. Both represent a potential claim on part of the company's assets and earnings. When common stock is purchased you are considered a share holder allowing you voting rights. The voting rights apply to election of the Board of Directors. You are also allowed to vote on a certain policies for the company. You might also receive potential dividend payments and preemptive rights. Preemptive rights allows you access first to new stock available for purchase. This rule is what makes common stocks most attractive to investors. Another plus, is limited liability. This is protection for the investor should the company go bankrupt. You would also still be entitled to portion of funds due to liquidation. The downside with liquidation is that stock holders are last to be paid from a business liquidation making it risky. Common stocks due have the advantage of growth but can be volatile.

Preferred stocks look similar to debt securities and asset securities You would still share ownership in a company but usually does not come with voting rights. It is a fixed income investment paid from a fixed dividend. There is no maturity date or set point like in bonds. They can give extra income but without the potential of growth found in Common Stocks. Preferred stock also pays holder faster should the company go out of business. Neither Common or Preferred stock holders are paid first. Bond holder and other debt holders are paid first when a company goes under.