Preferred Stock Is Like Common Stock in That Dividends Are

question 111

True/False

Preferred stock is like common stock in that dividends are not a legal obligation until the board of directors declares them.

---

Definitions:

Res Ipsa Loquitur

Res Ipsa Loquitur is a legal doctrine which allows proof of negligence to be inferred from the very nature of an accident or injury, in the absence of direct evidence on how any defendant behaved.

Act of God

An unforeseen and unpreventable event caused by natural forces, which exonerates parties from contract obligations.

Contributory Negligence

A legal principle that reduces the amount of damages a plaintiff can receive based on the degree to which the plaintiff's own negligence contributed to the harm.

Electrical Storm

A storm characterized by lightning and thunder, typically with heavy rain or hail.