1) A family with two income earners will always need a greater amount of cash reserves
than a family with one earner.
2) In the leveraging process, your own money is used to make an investment with the
goal of earning a rate of return in excess of the final selling price.
3) In the case of noncumulative preferred stock, the preferred stockholders would have
a claim to previously skipped dividends.
4) A testamentary trust becomes effective upon the death of the beneficiary.
5) When a company issues a new security, it must file an annual report.
6) A borrower who has failed to make a payment of principal or interest when due or
meet any other requirement of a credit agreement is said to be in foreclosure.
7) Common stockholders are guaranteed dividends.
8) The willingness of a lender to grant you credit is a good indicator that you can afford
the payments required.
9) Investments that are appropriate for funding short-term goals focus on capital gains.