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what are the difference between ?
1- issuing common stock
2- preferred stock
3- treasury stock
Businesses may take this action if they believe their stock is trading at a discount to its true market value amanda the adventurer
Common Stock -usually Regular Monthly Stock. Preferred Stock consists of The quantity Required to keep Minimum balance for On Going works. Treasure stock to Minimum as and When Required and to be used immediately.
Thanks for invitation,
Common Stock:
Is a form of corporate equity ownership, or a type of security. The terms voting share and ordinary share.
Preferred Stock:
Is a type of stock which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument. Preferred stocks are senior (i.e., higher ranking) to common stock, and have priority over common stock (ordinary shares) in the payment of dividends and upon liquidation..
Treasury Stock:
Is stock which is also bought back by the issuing company, reducing the amount of outstanding stock on the open market, it is also used as a tax efficient method to put cash into shareholders' hands, rather than paying dividends, in jurisdictions that treat capital gains more favorably. Sometimes, companies do it when they feel that their stock is undervalued on the open market.
This means that when the company must liquidate and pay all creditors and bondholders, common stockholders will not receive any money until after the preferred shareholders are paid out. Second, the dividends of preferred stocks are different from and generally greater than those of common stock