Examlex
Which of the following would not be considered a money market instrument?
Preferred Stock
Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shareholders typically receive dividends before common shareholders.
Cumulative Dividends
Dividends that are owed and accumulate if not paid in a given period, typically associated with preferred shares.
Common Stock
A type of security that represents ownership in a corporation, with holders having a claim on the company's assets and earnings.
Preemptive Right
The right of existing shareholders to purchase additional shares before the company offers them to the public, maintaining their proportional ownership.
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