A share of stock in a corporation is
A. a legal claim to a lump-sum payment at a specified point of time in the future.
B. a legal claim to a share of the company's future profits.
C. a guarantee to a fixed amount of income from the corporation.
D. a legal claim to a dividend, regardless of the corporation's ability to pay its interest payments.
Answer: B
You might also like to view...
When young students are hungry, they can be disruptive and inattentive in class. Thus, providing lunch to students has external benefits. The figure above represents the market for school lunches before and after government vouchers are issued
a. What is the unregulated private market equilibrium? b. What is the efficient quantity of lunches? c. What is the amount of the voucher necessary to move the economy to the efficient number of lunches? d. When vouchers are used, what is the dollar price of the lunch that suppliers receive and what is the dollar price that consumers pay when the voucher is used?
As default risk decreases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant
A) increases; less B) increases; more C) decreases; less D) decreases; more
An individual in the US wants to buy a car from England which costs 12,00 . pounds. If the exchange rate is $1.75/pound, how much will it cost him in dollar terms?
a. $21,000 b. $6,800 c. $12,000 d. Need more information
You are ill on the day of the concert for which you had bought tickets almost a month ago. Since you paid almost $40 for the tickets, you are considering whether to go to the concert anyway. Rational choice theory says that you should go to the concert only if:
A. the benefits of going outweigh the $40 dollars plus any additional pains associated with getting out of bed while being sick. B. the benefits of going outweigh the $40 dollars you spent on the tickets. C. the benefits of going outweigh any pains associated with getting out of bed while being sick. D. you feel better.