MT/217 MT217 MT 217 Unit 10 Discussion
- Kaplan University / MT 217
- 24 May 2018
- Price: $8
- Other / Other
Unit 10 Discussion
Stocks
There are two primary means to earn
income as a stockholder. The first method is dividend income and the second
method is earnings from capital gains. With respect to the investor seeking
dividend income, when the investor buys a stock from a corporation with a
primary focus to earn dividend income they will typically expect a higher
dividend on common stock versus preferred stock. Discuss the dividend payment
requirements of a common stock versus preferred stock, in terms of which type
of stock has a primary claim on dividend distributions. Explain why the common
stock investor demands a higher dividend rate.