A Major Drawback to an Investor Is That Dividends Are

question 87

True/False

A major drawback to an investor is that dividends are viewed as a passive variable, so a fixed income is never guaranteed.

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Definitions:

Shareholders Meeting

A formal gathering of the shareholders of a company to discuss and vote on company business.

Special Meeting

A meeting called for a specific purpose, outside of the regularly scheduled sessions.

Cumulative Voting

A system of voting for directors of a corporation in which shareholders can concentrate their votes on one candidate, rather than having to distribute them equally among candidates.

Majority Shareholder

An individual or entity that owns more than half of a company's outstanding shares, giving them controlling interest.