Assignment:
Question 1. Sometimes when you are dissatisfied with services rendered or received faulty goods, you have the option to put a stop payment on the check that you used to pay the company or service provider. The stop payment is a perk of this negotiable instrument. Read the article(Longo, T. (1995). The risks of paying by check. Kiplinger's Personal Finance Magazine, 49(7), 94.) and answer the following questions:
1. Should stop payments be allowed? Why or why not?
2. Discuss the length of time that one is allowed to have a verbal stop payment in effect? Is it too long, too short, should it be in writing sooner?
3. The article discussed that even with a written request the check can be cashed after six months unless the stop-payment order is renewed. Share your thoughts about the ability to still have your check cashed after six months.
Question 2. If a firm offers both preferred stock and common stock, which would you rather own? Explain your reasoning.