If a small business is successful it grows into a larger enterprise. And the owner will want to "cash out" which can be done by "going public" and issuing common stock. In addition, as a small business grows the owner may want to raise additional capital. This can be done by going to investors and issuing common stock, preferred stock, or bonds. The goal of this assignment is to introduce students to the three major instruments used by businesses (privately held or publicly held) to raise larger amounts of capital.

1. Please write a minimum 1000 word paper that describes the characteristics of common stock, preferred stock and bonds.

2. Second discuss the pros and cons of common stock, preferred stock and bonds from the perspective of an issuer.

3. Third discuss the pros and cons of common stock, preferred stock, and bonds from the perspective of an investor.