UNDERSTAND CONCEPTS Determine the best answer for each of the following questions. 1. Common stockholders have the right to a. vote for members of the board of directors b. receive a set amount of dividends c. receive payment before preferred stockholders d. convert their stock into other types of securities 2. When a company first issues shares of stock, it is referred to as the ? market. a. stock b. bond c. primary d. secondary 3. An initial public offering refers to ? ? a. issuing foreign bonds b. selling stock without using an investment banker c. doubling the number of shares of stock d. a company going public 4. True or False? Most preferred stockholders select preferred stock so they will be able to vote for corporate officers. 5. True or False? On a daily basis, most investors buy and sell shares of stock through the primary market