Common and Preferred Stocks

1. Corportations issue common stocks to raise money to start up their business and then to help pay for ongoing activities.
2. Investors purchase common stocks to make money in three different ways; They profit when they recieve dividends, when the dollar value of their stock appreciates, and when the stock splits and increases in dollar value.
3. Investors investors purchase preferred stock because it is considered a safer investment than common investment.
4. They split the stock because to gain intrest in that stock.