Matching
Match the following with the items below:
Premises:
Refers to the possibility of receiving additional dividend payments over and above the stated amount to be paid on this type of security.
Type of equity security with an obligatory dividend paid at a rate which is adjusted periodically to reflect current market conditions.
Stock issued to original owners of the company which often carry special voting privileges in excess of their proportionate ownership.
Assigning voting rights to management or another outside group.
All income that is not paid out to creditors or preferred stockholders automatically belongs to common stockholders.
Assures holders of this security that they will receive all dividends due them before dividends are paid to other types of dividend paying security holders.
These are similar to floating rate preferred stock but is a short-term instrument that matures every seven weeks and is sold at a subsequent bidding.
These allow a company to force conversion from convertible preferred stock into convertible debt.
Rights offering made to existing shareholders for the sole purpose of making it more difficult for an outside firm to acquire the company.
Responses:
participating preferreds
proxy
founders' shares
cumulative preferred stock
Dutch auction preferred stock
residual claim to income
poison pill
floating rate preferred stock
convertible exchangeable preferreds
Correct Answer:
Premises:
Responses:
Refers to the possibility of receiving additional dividend payments over and above the stated amount to be paid on this type of security.
Type of equity security with an obligatory dividend paid at a rate which is adjusted periodically to reflect current market conditions.
Stock issued to original owners of the company which often carry special voting privileges in excess of their proportionate ownership.
Assigning voting rights to management or another outside group.
All income that is not paid out to creditors or preferred stockholders automatically belongs to common stockholders.
Assures holders of this security that they will receive all dividends due them before dividends are paid to other types of dividend paying security holders.
These are similar to floating rate preferred stock but is a short-term instrument that matures every seven weeks and is sold at a subsequent bidding.
These allow a company to force conversion from convertible preferred stock into convertible debt.
Rights offering made to existing shareholders for the sole purpose of making it more difficult for an outside firm to acquire the company.
Premises:
Refers to the possibility of receiving additional dividend payments over and above the stated amount to be paid on this type of security.
Type of equity security with an obligatory dividend paid at a rate which is adjusted periodically to reflect current market conditions.
Stock issued to original owners of the company which often carry special voting privileges in excess of their proportionate ownership.
Assigning voting rights to management or another outside group.
All income that is not paid out to creditors or preferred stockholders automatically belongs to common stockholders.
Assures holders of this security that they will receive all dividends due them before dividends are paid to other types of dividend paying security holders.
These are similar to floating rate preferred stock but is a short-term instrument that matures every seven weeks and is sold at a subsequent bidding.
These allow a company to force conversion from convertible preferred stock into convertible debt.
Rights offering made to existing shareholders for the sole purpose of making it more difficult for an outside firm to acquire the company.
Responses:
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