It is common to refer to common stockholders as the "owners of a firm, because investors in common stock have certain rights and privileges generally associated with property ownership. Common stockholders bear most of the risk associated with a firm's operations, but they tend to benefit the most when a firm performs well. Each of the statements below describes a term associated with common stock. Identify which statement corresponds with each term listed in the table below: Income Growth Stocks Stocks Preemptive Right Statement Proxy A type of stock that pays little or no dividends because the firm is retaining its earnings for future investment in the company. Investors that rely on dividend income as a significant portion of their annual income tend to prefer this type of stock because it pays large, consistent dividends. This protects common stockholders from the management team of a firm issuing a large number of additional shares and purchasing these shares themselves in an attempt to gain greater control over the company. This is an instrument used to transfer the voting rights of a shareholder to a second party. Equity, or common stock, trades on stock markets all around the world. Because of globalization, the lines between equity markets are being blurred. In many cases, multinational firms sell equity in foreign equity markets. In other words, they sell stock on exchanges outside of their home country. Portman Industries is a Brazilian multinational company whose stock trades on the New York Stock Exchange. The statement above is an example of which of the following? O A Yankee stock O A Euro stock An American Depository Receipt (ADR)