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

question 25

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 often in mergers.
_____ 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:

Unemployment Insurance

A government-provided financial assistance program for individuals who have lost their jobs, offering temporary financial support.

Minimum Wage

The lowest legally enforceable wage that employers can pay their workers, aimed at protecting workers from exploitation.

U-5 Unemployment Rate

A measure of unemployment that includes those who are not working, available to work, and have looked for work within the past 12 months, plus marginally attached workers and those employed part-time for economic reasons.

Unemployment Insurance

A form of government assistance that offers income support to individuals who are unemployed through no fault of their own and meet specific eligibility requirements.