Section 9.1 Assignement

1-4 +6

1. Companies issue common stock to raise money to start up their businesses and then to help pay for ongoing activities.

2. Investors purchase common stock to make money in three different ways. They profit when they receive dividends when the dollar value of their stock appreciates and when the stock splits and increases in value.

3. Investors purchase preferred stock because preferred stock is considered a middle investment, the yield on preferred stock is generall lower then the yield on corporate bonds. Preferred stock is a safer investment.

4. To bring the stock price back into line.

6.  5%