Identify Whether the Key Characteristic Describes Common Stock (CS) or Preferred

question 53

Essay

Identify whether the key characteristic describes common stock (CS) or preferred stock (PS).
________ 1. Source of financing which places minimum constraints on the firm
________ 2. Used by young firms receiving investment funds from venture capital firms
________ 3. Potential dilution of earnings and voting power
________ 4. Fixed financial obligation
________ 5. Increases the firm's borrowing power
________ 6. May have cumulative and participating features
________ 7. May be convertible into another type of security
________ 8. Last to receive earnings or distribution of assets in the event of bankruptcy
________ 9. Frequently includes a call feature

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Definitions:

Sussex

A county in South East England, known for its historic significance and geographical features.

Unrestricted Submarine Warfare

A type of naval warfare in which submarines attack merchant ships without warning, famously used by Germany during both World Wars.

Zimmermann Telegram

A secret communication sent by Germany proposing a military alliance with Mexico in the event of the United States entering World War I against Germany, which helped sway US public opinion towards war.

Russian Army

is the land-based military force of the Russian Federation, inheriting the traditions and structure from the Soviet Union.