Question: One of your clients, John Browne, is considering different ways to raise money for the expansion of his companys operations. John is not sure about the advantages of issuing bonds versus issuing common stock. He asks you to explain, in simple terms, the answer to his question.

Answer: You are responding to John's question. Include in your post an explanation of:

1. the advantages and disadvantages of issuing bonds
2. the advantages and disadvantages of issuing common stock
3. the basic differences between preferred stock and common stock