1. Corporations issue common stock in order to raise money to start up their businesses and then have money to help pay for activities that will occur in the businesses.
2. Investors purchase common stock in order to make money in three different ways: profit off of dividends, when the dollar value of their stock appreciates, and when the stock splits and increases in dollar value.
3. Investors will purchase preferred stock because it's safer than common stock, and it will usually bring in a steady income. Unfortunately preferred stock lack the potential for growth.
4. When the stock price is really expensive, investors may not want to buy because they can't afford it. Spliting the stock decreases the price of a share and encourages more people to buy. It's like a false hope that the company is doing really fantastic and looking towards a bright future when this may not be the case.
6. I think it's $846
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