Requirement 1:

Of two corporations organized at approximately the same time and engaged in competing businesses, one issued $80 par common stock and the other issued $1 par common stock. Do the par designations provide any indication as to which stock is preferable as an investment? Please explain.

Requirement 2:

A stockbroker advises a client to buy preferred stock. With that type of stock, [you] will never have to worry about losing the dividends. Please let us know if the broker is correct.

Please explain the primary purpose of a stock split.