Dividends Tend to Be More Stable Than

question 69

Multiple Choice

Dividends tend to be more stable than:

• A)cash flow.
• B)earnings.
• C)preferred stock.
• D)both B and C.

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Definitions:

Held-to-Maturity Securities

Financial assets that the holder has the positive intent and ability to hold until a specified maturity date.

Debt Securities

Financial instruments that signify amounts owed by the issuer to the holder and include terms regarding repayments and interest rates.

Trading Securities

Financial assets bought and held primarily for sale in the short term to generate income on short-term price differences.

Investment Account

An account held at a financial institution or brokerage that holds assets like stocks, bonds, mutual funds, and other investments.