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1. Corporations issue common stock to raise money to start up their businesses and then help pay ongoing activities.
2. Investors purchase common stock to make money in thee different ways. a.)They profit when they receive dividends.
b.)when the dollar value of their stocks appreciates.
c.)when the stock splits and increases in dollar value.
3. investors purchae preferred stockbecause it is the safest investment, not as safe as bonds, but is genereally lower than the yeild on corprate bonds, but higher than common stock.
4.they will make more money by spittign and buyers see the split and see the stock more desirable.
6.you take the value of the stock times the dividend rate, to find the par value. the dividend rate is the percent.