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The Basic Purpose of Insurance Is to Protect You from the Results

question 14

True/False

The basic purpose of insurance is to protect you from the results of accidental losses.


Definitions:

Common Stock

A kind of ownership stake in a company that allows holders to participate in voting on company issues and to earn dividends.

Dividends Per Share

The total dividends declared by a company for each share of common stock owned.

Cumulative Preferred Stock

A type of preferred stock that entitles its holder to dividends that, if not paid, accumulate and must be paid out before any dividends can go to common stockholders.

Common Stock

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

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