1. What are the differences between common stock and preferred stock? gives owners certain advantages such as the right to receive dividends and liquidation payments ahead of other shareholders. However, this stock is generally non-voting. is the basic form of capital stock. These shareholders are the owners of the corporation who have basic rights such as the right to vote. number of shares of stock to issue for the land? We should first determine . Then by . The result will tell us how many shares of our stock to issue for the land. Investors buy common stock in the hope of than is available on an investment in preferred stock. Investors in common stock expect than they would expect with preferred stock. 4. What is the difference between return on assets (ROA) and return on equity (ROE)? measures profitability in comparison with just the shareholders" investment. measures profitability as a percentage of the company's total asset investment by both creditors and shareholders. Common Stock.) Zanzibar Corporation can improve ROE by increasing or decreasing . One way to decrease would be to buy up treasury stock