To Most Stockholders, the Main Advantages of Common Stock Investments

question 44

Multiple Choice

To most stockholders, the main advantages of common stock investments are:

• A)attractive returns and active trading.
• B)guaranteed returns and voting rights.
• C)a high interest payment and active trading.
• D)high risk and guaranteed returns.
• E)low risk and guaranteed returns.

---

Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.

Semi-Annually

Semi-annually refers to an event or action occurring twice a year, typically every six months.

Real Rate Of Return

The yearly return percentage on an investment, modified for price level changes caused by inflation or other external factors.

Nominal Rate

The nominal rate is the interest rate set by the lending institution, not adjusted for inflation, representing the face value of the interest rate.