Final answer:
The question is about the stock issuance details of Aggregate Mining Corporation, highlighting the characteristics and authorization details related to its preferred stock offering. Preferred stock typically offers a fixed dividend and certain advantages over common stock, like cumulative dividend rights.
Step-by-step explanation:
The query pertains to Aggregate Mining Corporation and its stock issuance details, specifically its preferred stock characteristics. When a company is authorized to issue 500,000 shares of $100 par value 8% cumulative preferred stock, it implies that the corporation can sell up to that number of shares, with each share having a nominal value of $100 and assuring an 8% dividend annually. If dividends cannot be paid in one year, they accumulate and must be paid out before any dividends on common stock. Cumulative preferred stock gives shareholders the right to dividends in arrears before current-year dividends are paid to common shareholders.
Preferred stock often has features that make it attractive to investors looking for stable income, such as a fixed dividend rate. The phrase 'authorized to issue' means that the company has the legal capacity to sell these stocks up to the specified amount, but it does not necessarily mean that all the shares have been issued to investors. The statement also mentions 750,000 shares, but it is unclear what type of shares these are due to the incomplete information provided.