Amortization of premium and stock 1 What is the meaning of the following sentence: Amortization affe

Amortization of premium and stock

1 What is the meaning of the following sentence: Amortization affects the amount of interest expense? How does amortization of premium affect the amount of interest expense? How does amortization of discount affect the amount of interest expense?

2 Why might some stockholders be included to buy preferred stock rather than common stock? What are the advantages of investing in preferred stock?