Monday, August 19, 2013

What is a reasonable ratio of preferred stock to common stock when starting a corporation? and Stock Market Bubble

What is a reasonable ratio of preferred stock to common stock when starting a corporation?



When forming a corporation, what is a common practice for issuing preferred stock & common stock. Is there a specific % of one to the other ? Are there any benefits / drawbacks ?


Stock best answer:

Answer by Feeling Mutual
Not really.

If it is an S-Corp, do not issue preferred shares. Just 1 type of stock, common stock that has voting rights and the right to receive the net assets of the corporation upon dissolution.


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FIsheye of the New York Stock Exchange.



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