Question: please answer 9 and 10 9. Common Stocks (4 marks) a. What types of stocks might an investor seeking an income stream choose to invest
9. Common Stocks (4 marks) a. What types of stocks might an investor seeking an income stream choose to invest in? (1 mark) b. If an investor is not looking for an income stream from investing in stocks, then what would be the most likely motive for buying the stock? (1 mark) c. Why do corporations split their stocks? (1 mark) d. How does the pre-emptive right potentially benefit the investor? (1 mark) 10. Preferred Stocks (4 marks) a. What are the most important features of preferred shares? (1 mark) b. What are callable preferred shares? (1 mark) c. How do cumulative preferred shares differ from non-cumulative preferred shares? (1 mark) d. Describe the conversion feature of preferred shares. (1 mark)
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