Which of the Following Is an Accurate Statement

question 86

Multiple Choice

Which of the following is an accurate statement?

• A) Owning common stock is less risky than owning real estate.
• B) In times of rising inflation, it is safer to own bonds than common stock.
• C) Owning common stock provides the investor with a share of the firm's earnings and potential dividends.
• D) Owning preferred stock is more risky than owning common stock since the investor has voting rights with common stock and it stands before preferred stock in the event of bankruptcy.

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Definitions:

Social Security

A federal program in the United States that provides retirement, disability, and survivors benefits to eligible individuals.

Married, Filing Jointly

A tax filing status available to married couples that allows them to file one tax return jointly, combining their incomes and deductions.

Marginal Ordinary Income Tax Rate

The tax rate that applies to the last dollar of the taxpayer's income, influencing decisions on additional income.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.