Certificates of Deposit

question 13

Multiple Choice

Certificates of deposit:

• A) tie up your money
• B) have variable interest rates
• C) are used to save for retirement
• D) all of these choices

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Definitions:

Dividends in Arrears

Unpaid dividends on cumulative preferred stock, which must be paid out before any dividends can be issued on common shares.

Cumulative Preferred Stockholders

Investors holding a type of preferred stock that accumulates dividends in arrears should the dividends not be declared in any given period.

Non-Participating

Refers to insurance policies or investment products that do not provide dividends or bonuses to policyholders or investors.

Yearly Dividend

The total dividend payment a company offers to its shareholders annually, which can be a sign of the company's profitability and financial health.