How does a stock trade take place? Go to www.nyse.com and click on “The Trading Floor” and find the discussion of how trades take place. Summarize the trading process.

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How does a stock trade take place? Go to www.nyse.com and click on “The Trading Floor” and find the discussion of how trades take place. Summarize the trading process. Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the preferred or a share of the common?

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