Gray Markets Can Be a Challenge to Marketers Because

question 53

Multiple Choice

Gray markets can be a challenge to marketers because

• A) they are just as illegal as black markets.
• B) they may tarnish the manufacturer's image.
• C) they are legal in some states and illegal in others.
• D) consumers are against them,but retailers support them.
• E) they may result in price increases across the board.

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Definitions:

Dividend

Money distributed to shareholders by a company, usually sourced from its profits.

Cumulative Preferred Stock

A type of preferred stock that accumulates unpaid dividends, which must be paid out before any dividends can be distributed to common stockholders.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Dividend

A share of a company's profits distributed to its shareholders, usually paid in cash or additional stocks.