1. Preferred stock is referred to as a hybrid security because it has many characteristics of both common stock and bonds. True or False

2. A Default-risk premium is the additional return required by investors to compensate them for the risk of default. True or False

3. Cumulative voting is advantageous to minority shareholders, and the total votes will be the number of shares multiply with the number of opening board seats. True or False

4. Common stock has a definite maturity. True or False