Sources of Unsystematic Risk Include

question 19

Multiple Choice

Sources of unsystematic risk include
1. the firm's financing decisions
2. the firm's operations
3. fluctuating market prices

• A)1 and 2
• B)1 and 3
• C)2 and 3
• D)all of the above

---

Definitions:

Dividend

a distribution of a portion of a company's earnings to its shareholders, usually in cash or additional shares.

Convertible Preferred Stock

Preferred stock that gives the owner the option of converting those preferred shares into a stated number of common shares.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, giving voting rights and a share in the profits.

Par Value

Par Value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.