Figure 2-21 
-Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?
Definitions:
Cumulative Dividends
Dividends that are owed and accumulate if not paid in a given period, typically associated with preferred shares.
Common Stock
A type of security that represents ownership in a corporation, with holders having a claim on the company's assets and earnings.
Preemptive Right
The right of existing shareholders to purchase additional shares before the company offers them to the public, maintaining their proportional ownership.
Common Shareholder
A common shareholder is an individual or institution that owns common shares in a company, giving them rights to vote at shareholder meetings and to receive dividends.
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