F.4 ECON

Preferred shareholders have priority over common stockholders on earnings and assets in the event of liquidation and they have a fixed dividend (paid before common stockholders), but investors must weigh these positives against the negatives, including giving up their voting rights and less potential for appreciation
i) I would prefer to be a ordinary shareholder as I can enjoy higher potential on stock price appreciation and dividends. ii) I would prefer to be a preference shareholder as I can claim back the investments before ordinary shareholders because the company will close down soon.

i). I would prefer to be a preference shareholder of Comapany B if it earns huge profit. As a preference shareholder could get dividend before the ordinary shareholder

ii). I would prefer to be a a preference shareholder of Comapany B if it closes down. Since a preference shareholder has the first priority to get money back before the ordinary shareholder.