Answer the following statement(s) true (T) or false (F)
1. Bonds are considered riskier than stocks.
2. Preferred stockholders are paid before bondholders.
3. Common stock dividends do not vary based on profit.
4. Stockholders are the people who own corporations.
5. It is very difficult for an individual to own stock in a corporation.
1. False
2. False
3. False
4. True
5. False
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Whatever serves as a medium of exchange is: a. money
b. money, as long as it is also the best such medium of exchange available. c. money, as long as it is not also a commodity. d. money, as long as it is not also legal tender. e. not money, unless it continues to be backed by its issuing institution.
The process of taking advantage of market inefficiencies to earn profits is called:
A. arbitrage. B. technical analysis. C. a random walk. D. futures contracting.
Borrowers:
A. gain from inflation, as the value of their debt decreases. B. lose with inflation, as the value of their debt decreases. C. gain from inflation, as the value of their debt increases. D. lose with inflation, as the value of their debt increases.
If a firm that has total revenue of $5 million shuts down, we may conclude that its variable costs are __________.
Fill in the blank(s) with the appropriate word(s).