"Preferred" Stock Can Be Issued in Different Classes,with One Class

question 2

True/False

"Preferred" stock can be issued in different classes,with one class of preferred stock given preference over another class of preferred stock.

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Definitions:

Large Stock Dividend

The distribution of a significant number of additional shares to existing shareholders, typically used to conserve cash while still providing a dividend.

Board of Directors

A group of individuals elected by shareholders responsible for overseeing the activities and strategic direction of a company.

Cumulative Preferred Stock

A type of preferred stock that accrues dividends if not paid out in the year they are due, ensuring investors receive dividends before common shareholders.

Dividends Payable

A liability representing the amount of dividends declared by a company's board of directors that have not yet been paid to shareholders.