Mike Invests $10,000 in the Dow Jones Industrial Index on January

question 250

True/False

Mike invests $10,000 in the Dow Jones Industrial Index on January 1, 2006 when the index was at 11,357. At the end of 2016, the index was at 11,578. The value of Mike's investment after the ten years was $10265.60

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Definitions:

Preferred Stock

A category of corporate ownership that ranks above common stock in terms of asset claims and earnings, usually providing fixed dividend payouts.

Guaranteed Dividend

A dividend that is promised to be paid to shareholders of a company out of future earnings or profit.

Noncumulative Preferred Stock

Noncumulative preferred stock is a type of preferred stock where missed dividend payments are not required to be paid back to the shareholder.

Callable Preferred Stock

Callable preferred stock is a type of preferred share that gives the issuer the right to redeem the stock at a predetermined price after a specific date.