Question 11. 11.( TCO 5) Bill Affleck is interested in buying preferred stock, but to be protected if the company needs to omit a dividend payment. He wants any unpaid dividends to accumulate and be paid before any common stock dividends are paid. Which one of these features of preferred stock is Bill seeking?
Convertible Callable Cumulative Credible None of the above
Question 12. 12.( TCO 5) A very safe investment that generally attracts conservative investors is called a( n) _____ stock.
penny cyclical growth small cap blue chip
Question 13. 13.( TCO 5) All of the statements below are false except
corporations are required by law to report all activities to their stockholders each month.
stockholders may vote only by proxy.
stockholders must approve the sale of all goods and services by the company.