Holders of Common Stock Must Be Made Aware of Possible

question 30

Multiple Choice

Holders of common stock must be made aware of possible restrictions on common dividends when the preferred stock is

• A) convertible.
• B) cumulative.
• C) callable.
• D) noncumulative.

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Definitions:

Interest Rate

An Interest Rate is the percentage charged on the total amount of borrowed money or paid on savings, over a specific period of time.

Legally Binding

A term applied to agreements or contracts that have legal force, meaning they are enforceable by law.

Contracts

Legally enforceable agreements between two or more parties that create mutual obligations.

Minor

A person under the legal age of majority, typically under 18 years old, who has certain restrictions on their legal capabilities such as entering into contracts.