Which of the Following Is a True Statement Regarding Stock

question 50

Multiple Choice

Which of the following is a true statement regarding stock investments?

• A)A corporation generally obtains equity capital from bondholders.
• B)A corporation must issue preferred stock before issuing common stock.
• C)When a corporation is experiencing financial problems,an investor should purchase common rather than preferred stock.
• D)Corporations are required to pay dividends every year.
• E)There are no guarantees that a stock's value will go up after you purchase it.

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Definitions:

Reliability

The extent to which a measure is consistent and free from error, providing similar results under consistent conditions.

IQ Scores

A measure of a person's cognitive abilities and potential, commonly expressed as a score derived from standardized tests designed to assess human intelligence.

Percentage

A mathematical term describing a number or ratio expressed as a fraction of 100.

Standardized Tests

Tests that are administered and scored in a consistent, or "standard," manner and are designed to measure students' comparative performance.