What risks are you assuming with preferred stock that you would not have with common stock and bonds? Be specific
What will be an ideal response?
Answer: When interest rates rise, the value of the preferred stock drops. When interest rates drop, the value of the preferred stock rises and the preferred stock is called away from the investor. The investor does not participate in the capital gains that common stockholders receive. This investment does not have the safety of bond interest payments, because preferred stock dividends can be passed without the risk of bankruptcy.
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Supply chains have been in existence for over a century. What is different about supply chains in the 21st century from those in existence 100 years ago?
What will be an ideal response?
The Securities Investor Protection Corporation insures individual investors against
A) the loss of up to $500,000 in securities or $100,000 in cash held by a broker. B) market losses of $500,000 total or $100,000 per transaction. C) losses of up to $100,000 incurred due to innocent online trading errors. D) losses incurred up to $500,000 due to churning by a broker.