Common and Preferred Stock Financing教程文件.pptVIP

Common Stock Belongs to common shareholders through voting rights and residual claim to income None Lowest claim of any security holder Highest Preferred Stock Limited rights when dividends are missed Must receive payment before common shareholder Bondholders and creditors must be satisfied first Moderate Bonds Limited rights under default in interest payments Contractual obligation Highest claim Lowest 1. Ownership and control of the firm 2. Obligation to provide return 3. Claim to assets in bankruptcy 4. Cost of distribution PPT1