Preferred stockholders

do not have preference over common stockholders in the case of liquidation

do have preference over bondholders in the case of liquidation

do not have preference over bondholders in the case of liquidation

Two of the above are true statement

Most businesses raise money by selling their securities in a

public offering.

private placement.

direct placement.

stock exchange.

The theory suggesting that for any given issuer, long-term interest rates tends to be higher than short-term rates is called

expectation hypothesis

liquidity preference theory

market segmentation theory

None of the above.