Which of the following preferred issues is likely to fluctuate most in value?
A. cumulative preferred
B. callable preferred
C. convertible preferred
D. broker preferred
convertible preferred. Because of the conversion feature, convertibles are more closely linked to
the price of the common stock. In addition, since the dividend rate on convertible preferred is
usually lower than other preferred issues, the convertibles are more sensitive to interest rate
Which of the following rights does an ADR holder not have?
A. preemptive rights
B. the right to vote for your mother-in-law as a board member
C. the right to transfer ownership
D. the right to see financial statements
preemptive rights. Holders of ADRs do not have preemptive rights, although they have most
other rights of shareholders, including the right to vote for board members-even a mother-in-law
A corporation makes a rights offering to raise $10 mil ion of new capital by issuing one mil ion
shares of common stock. If it already has six mil ion shares outstanding at the time of the
How many rights wil the corporation distribute to its shareholders?
A. one mil ion
B. six mil ion
C. ten mil ion
D. sixteen mil ion
six mil ion. One right for each outstanding share is distributed.