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Series 7 1.2
Stock
| Question | Answer |
|---|---|
| Two types of stock | Common and Preferred |
| What kind of stock represents equity ownership in a corporation, but it usually does not have the same voting rights or appreciation potential as common stock. | Preferred Stock |
| Preferred stock normally pays? | A fixed, semiannual dividend and has priority claims over common stock; that is, the preferred is paid first if a company declares bankruptcy. |
| Common Stock can be classified as: | Authorized, issued, outstanding, and treasury. |
| A stock that refers to a specific number of shares the company has authorization to issue or sell. | Authorized Stock |
| Stock that has been authorized and distributed to investors. | Issued Stock |
| Stock which includes any shares that a company has issued but has not repurchased--that is, stock that is investor owned. | Outstanding Stock |
| Stock a corporation has issued and subsequently repurchased from he public. | Treasury Stock |
| Issued stock - treasury stock = ? | Outstanding Stock |