If a Is Preferred to B and B Is Preferred

question 86

Short Answer

If A is preferred to B and B is preferred to C, then we would expect A to be preferred to C. This property is called

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Definitions:

Restricted Shares

Shares of stock that are granted to an employee but come with restrictions on sale and transfer until certain conditions are met.

Cocktail Provision

A clause in agreements or policies designed to handle unforeseen circumstances.

Preferred Shares

Type of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often with fixed dividends.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.