Which of the Following Statements Regarding Common Stocks Is True

question 49

Multiple Choice

Which of the following statements regarding common stocks is true?

• A) The par value of common stock is usually $100.
• B) The market value of common stock is equal to its book value.
• C) Dividends on common stock are at the discretion of the company.
• D) Common stock has a senior claim on company assets.

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Definitions:

Pessimism

A tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Learned Helplessness

is a condition in which a person suffers from a sense of powerlessness, arising from persistent failure to succeed or escape from a stressful situation.

Unavoidable Shocks

An inescapable event or occurrence that causes stress or trauma, often used in the context of psychological experiments.

Self-Regulation

The ability to monitor and control one's behaviors, emotions, or thoughts, adjusting them in accordance with standards or goals.