Question 1 1 pts 1. How is "Preferred Stock" best differentiated from Common Stock? F) None of the listed answers. A) Institutional investors overwhelmingly choose it over Common Stock. OB) It represents shares of an entity's founder. For example, preferred shares of Apple stock are those originally owned by Steve Jobs. E B and C. C) It typically does not have voting rights G) C and D. D) It may include contractual components. Question 2 1 pts 1. Morgan Stanley's "Merchant Banking" division uses the firm's capital to make money by buying and selling stocks and bonds, and making loans. In August 2008, assuming the form had completed the Balance Sheet Valuation of FNM discussed in the handout and in the text, the best way for the division to try to make money from FNM's situation was to: D) Sell Short FNM's common stock. Al Make loans to FNM, OB) Buy FNM's bonds OF) B and C OC) Buy FNM's common stock. E) A and B