Examlex
Which of the following statements is correct?
Equity
Equity refers to the ownership interest held by shareholders in a corporation, represented by their shares of the company's stock.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.
Financially Weak
Refers to a state where a company or an individual has poor financial health, often indicated by low liquidity, high debt, or difficulty in generating income.
Dividend Payments
Cash or other forms of payments made by a corporation to its shareholders, typically out of the company’s earnings.
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