Assets That Have Intrinsic Value

question 101

Multiple Choice

Assets that have intrinsic value:

• A) retain a more steady value than assets without intrinsic value.
• B) get traded more often than assets without intrinsic value.
• C) generally have a lower value than other goods.
• D) are not well-suited to being used as money.

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Definitions:

Cumulative Preferred Stock

Preferred stock that, if the corporation doesn’t pay the specified percentage, has the unpaid amount (the dividend in arrears) carried over to the following year or years.

Capital Stock

The total amount of shares that a corporation is authorized to issue to shareholders, representing the primary source of equity financing for the company.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that were missed in the past before any dividends are paid to common stock shareholders.

Capital Stock

The total amount of shares that a corporation is authorized to issue as stated in its articles of incorporation.