(I)Firms issue common stock in far greater amounts than preferred stock.
(II)In a given year,the total volume of stock issued is much less than the volume of bonds issued.

Question

Quizplus · Accepted Answer

Firms typically issue more common stock than preferred stock because common stock is the primary means of raising equity capital. Additionally, the bond market is generally larger than the stock market, leading to a higher volume of bonds being issued compared to stocks in a given year.

(I)Firms Issue Common Stock in Far Greater Amounts Than Preferred