Question: 1. What is par value? How is it related to market value? How is it used in recording the issuance of stock?
2. What are the three potential features of preferred stock? Indicate whether each feature makes the preferred stock appear more like stockholders' equity or more like long-term liabilities.
3. Explain why preferred stock often is said to be a mixture of attributes somewhere between common stock and bonds.
4. What would motivate a company to buy back its own stock?