CH 1 series 66
Benefits of owning Common stock:
-historical hedging against inflation -liquidity -voting rights -dividend payout
Only ___ stock has preemptive rights and the potential for growth to keep pace with inflation.
Common
For a profitable and rapidly growing firm, holders of preference shares are least likely to benefit from the firm's growth if the preference shares are: Cumulative / Convertible / Participating ?
Cumulative
The SEC rule that sets the requirements for selling / purchasing restricted, unregistered or control stock is ____.
SEC Rule 144
This rule applies to the sale of unregistered securities owned by affiliates or nonaffiliates and the sale of control stock. It does not apply to the sale of registered securities by nonaffiliated persons.
SEC Rule 144
Cumulative Preferred stock
requires thats dividends in arrears "accumulate" & must be paid, in addition to the current year's dividends before any CS shareholders receive dividend payment.
The ___ right of common shareholders refers to their positioning in claiming rights in the event of bankruptcy. wages > taxes > creditors > preferred shareholders> CS shareholders
residual