Preferred Stock Is a Hybrid¾a Sort of Cross Between a Common

question 54

True/False

Preferred stock is a hybrid¾a sort of cross between a common stock and a bond¾in the sense that it pays dividends that normally increase annually like a stock but its payments are contractually guaranteed like interest on a bond.

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Definitions:

Reversible Figure

An optical illusion or image that can be perceived in two different ways, depending on how one looks at it.

Gestalt Principle

A theory in psychology that proposes objects are perceived not by means of a passive and automatic registering of features but through active and holistic processes.

Figure And Ground

A principle in visual perception that describes how humans separate an object (the figure) from its surrounding area (the ground).

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time.