Which statement is true?
A. From a legal perspective, preferred stock is a form of corporate equity.
B. All classes of stock must have equal voting rights per share.
C. Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitions.
D. Preferred dividends provide tax-free income to individual investors.
E. Preferred shareholders prefer noncumulative dividends over cumulative dividends.
Ans: A. From a legal perspective, preferred stock is a form of corporate equity.
You might also like to view...
The best way to reference your sources during a speech delivery is to
A) provide a lead-in phrase before you cite each bit of evidence B) save the references for the end of your speech C) read the APA or MLA entry directly from your bibliography D) begin by stating where your information is from
All of the following statements about the independent agency system are true EXCEPT
A) Agents are often authorized to adjust small claims. B) Agents are compensated on the basis of commissions. C) The insurer rather than the agent owns the renewal rights to the business. D) The agent is an independent business person who represents several insurers.