The Type of Stock in Which Stockholders Are Assured That

question 11

Multiple Choice

The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ stock.

• A) common
• B) convertible preferred
• C) participating preferred
• D) cumulative preferred
• E) callable preferred

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Definitions:

Unregulated Market

A market where economic activities are freely carried out without governmental intervention in terms of prices, production, and distribution.

Shortage

A situation where the demand for a product or service exceeds the supply available at a specific price.

Product

Any good, service, or idea that can be offered to a market to satisfy a want or need.

Excess Supply

A situation where the quantity of a good or service supplied is greater than the quantity demanded at the current price.