INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 80

Short Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
With a life annuity, period certain, a payment will be made for a stated period of time [ only to the annuitant if he or she lives | to someone else if the annuitant dies ].

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Definitions:

Cumulative

An adjective describing something that increases or accumulates over time, often used in the context of dividends that haven't been paid out and are owed to shareholders.

Dividends In Arrears

Due dividends on cumulative preferred stock that have not been paid in the period they were due.

Preferred Dividends

Dividends that are paid to preferred shareholders, typically at a fixed rate, before any dividends are paid to common shareholders.

Treasury Stock

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.