Problem: You want to invest some of your savings in the stock market. You have researched different companies and have narrowed options down to two: Company A and Company B. Company A offers both preferred and common stocks. The preferred stock pays an annual dividend of 5% and has a par value of $50 per share. The common stock has a current market price of $60 per share and does not pay a dividend. Company B, on the other hand, only offers common stock. Its current market price is $40 per share, and it does not pay a dividend. You have $5,000 to invest and are torn between buying preferred stock from Company A or common stock from either Company A or B. You must decide which type of stock is more suitable for your investment goals and risk tolerance. Which one do you choose? Why?