A Protective Feature on a Preferred Stock That Requires Preferred

question 49

Multiple Choice

A protective feature on a preferred stock that requires preferred dividends previously not paid to be disbursed before any common stock dividends can be paid is called _____.

• A) par value
• B) voting rights
• C) cumulative dividends
• D) sinking fund
• E) preemptive right

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Definitions:

Government Intervention

Actions taken by a government to influence or directly regulate the economy, often to correct market failures and promote economic stability.

Chemical Hazard Control

The methods and practices involved in reducing or eliminating exposure to harmful chemical substances in the environment or workplaces.

Government Intervention

The involvement by the government in the economy, with actions that can include regulations, subsidies, tariffs, and direct provision of goods and services.

Externalities

Costs or benefits arising from an economic activity that affect other parties who did not choose to incur that cost or benefit.