Assignment PG 274 Q1-4,6

1. Common stocks are issued to gain money for starting up or ongoing expenses
2. Investors buy common stocks hoping the value wioll increase and they will gain capital on there investment.
3. Preffered stock holders are always first to be payed dividends.
4. Splitting a raised or rising stock can create interest in that stack and it will sell to more people raising the price. Also if a stock doubles then is split the holder can get his initial investment back to reinvest and still hold stock in a company.
6.25*45*.06=$67.50