The Most Important Priority That an Investor in Common Stock

question 139

True/False

The most important priority that an investor in common stock enjoys is receiving cash dividends before preferred stockholders are paid any cash dividends.

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Definitions:

Rational-Basis Test

The lowest standard of review; requires that a law be designed to protect a legitimate state interest and be rationally related to that interest.

Suspect Classifications

Suspect classifications are categories or classes, such as race, religion, or national origin, that trigger strict scrutiny by courts when governments pass laws discriminating against them.

Classification Scheme

A system or method used to organize or categorize items into groups based on shared characteristics or criteria.

Bill of Rights

The collective name for the first ten amendments to the United States Constitution, which outline and guarantee fundamental rights and protections to American citizens.