1 The main motivation for buying common stocks is capital appreciation interest income stability of income stability of initial investment 2 Relative…

1:

The main motivation for buying common stocks is

capital appreciation

interest income

stability of income

stability of initial investment

2:

Relative to common stock, preferred stock:

is similar to a bond since it has a prior and fixed claim to the assets of the corporation as compared to the common stock holder should firm bankrupcty occur

has higher dramatic gains

is cheaper than common stock

is attractive to only those looking for capital appreciation