Gaby Williams Is Thinking About Buying Some Stock but Wants

question 29

Multiple Choice

Gaby Williams is thinking about buying some stock but wants some protection should the issuer miss paying a dividend payment. Which one of the following features would help provide this protection?

• A) Convertible
• B) Callable
• C) Cumulative
• D) Cancellable
• E) Common

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Definitions:

Commercial Banks

Financial institutions that provide various financial services, including accepting deposits, offering business and personal loans, and other investment products.

Security Selection

The process of choosing individual securities for investment with the aim of achieving a portfolio's investment goals.

Investment Portfolio

An assortment of monetary assets, including shares, bonds, commodities, money, and near-money instruments such as mutual funds and exchange-traded funds (ETFs).

Asset Classes

Categories of assets with similar characteristics and behavior in the marketplace, such as stocks, bonds, real estate, and cash.