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Bonds issued by the U.S. government: [A] are considered to be default-free. [B] are exempt from interest rate risk. Multiple classes of stock are primarily
Bonds issued by the U.S. government: [A] are considered to be default-free. [B] are exempt from interest rate risk. Multiple classes of stock are primarily created to: [A] allow certain shareholders to retain control of a firm [B] replace cash dividends with share repurchases. A ____is a form of equity security that has a stated liquidating value. [A] debenture [B] bond [C] preferred stock The voting procedure where you must own 50 percent plus one of the outstanding shares of stock to guarantee that you will win a seat on the board of directors is called straight voting. [A] True [B] False The market in which new securities are originally sold to investors is called the ____market. [A] secondary [B] primary Preferred stock always has the right to vote. [A] True [B] False A market participant who buys and sells securities from inventory is called a dealer. [A] True [B] False A stock that pays a constant annual dividend will have a market price that: [A] in
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