Preferred Stock Is a Hybrid⎯a Sort of Cross Between a Common

question 22

True/False

Preferred stock is a hybrid⎯a sort of cross between a common stock and a bond⎯in the sense that it pays dividends that normally increase annually like a stock but its payments are contractually guaranteed like interest on a bond.

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Definitions:

Agency Shop

A workplace where employees are not required to join the union, but must pay union dues as the union negotiates on behalf of all employees.

Rand Formula

An option in a collective agreement enabling employees to retain the right not to join the union, though they are still required to pay union dues; also known as an agency shop.

Check-Off Provision

A provision in a collective agreement whereby employees agree to have the employer deduct union dues from their payroll.

Non-Competition Clause

A contract provision preventing an employee from entering into competition with their employer during or after their employment period.