Which of the Following Securities Has the Highest Priority with Regard

question 22

Multiple Choice

Which of the following securities has the highest priority with regard to the distribution of both earnings and proceeds from the liquidation of assets of a firm?

• A)Corporate bonds
• B)Preferred stock
• C)Common stock
• D)American depository receipts (ADRs)
• E)Foreign stocks

---

Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring in group settings that foster anonymity.

Social Facilitation

When the mere presence of others improves performance.

Group Polarization

The phenomenon by which a group's prevailing attitudes or beliefs become more extreme following group discussions, as members tend to support more extreme positions.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.