Which of the Following Statements Concerning Common Stock and the Investment

question 24

Multiple Choice

Which of the following statements concerning common stock and the investment banking process is NOT CORRECT?

• A) The preemptive right gives each existing common stockholder the right to purchase his or her proportionate share of a new stock issue.
• B) If a firm sells 1,000,000 new shares of Class B stock, the transaction occurs in the primary market.
• C) Listing a large firm's stock is often considered to be beneficial to stockholders because the increases in liquidity and reputation probably outweigh the additional costs to the firm.
• D) Stockholders have the right to elect the firm's directors, who in turn select the officers who manage the business. If stockholders are dissatisfied with management's performance, an outside group may ask the stockholders to vote for it in an effort to take control of the business. This action is called a tender offer.

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Definitions:

Geopolitics

The study of the effects of geography (human and physical) on international politics and international relations.

Hyphenated-Canadian Syndrome

A term referring to the identity phenomena where individuals of immigrant descent in Canada identify with both their ethnic heritage and their Canadian identity, often represented with a hyphen (e.g., Indo-Canadian).

Global Citizenship

A concept involving the understanding of global issues, recognizing interconnectedness among nations and cultures, and taking active roles in addressing global challenges.

Multiculturalism

The presence of, or support for the presence of, several distinct cultural or ethnic groups within a society.