THE ADVANTAGES AND DISADVANTAGES OF FINANCING WITH PREFERRED AND COMMON STOCK

This article discusses equity financing. The advantages and disadvantages of issuing preferred and common stock are addressed, along with the various circumstances in which either financing source is most suited. Stock rights are also described. Consideration is given to the advantages and disadvantages of public versus private placement, or sale. Also discussed is the role of the investment banker. The economic benefits of a well-run stock exchange is considered. Facilitates improvement in corporate behavior and the high level of public awareness of the business explored in conditions of market economy. The special attention is paid to dividend policies. Certainly essence and types of dividend policy of enterprises. The factors of influence on the dividend policy of enterprises are analyzed and systematized. Treats the issue of generated profit distribution by a company taking into consideration planned investments. It is marked necessity of individual approach to forming mechanism of payments and extra charge of dividends for different enterprises.