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247. According to the
Spotlight on Small Business
box, which of the following is NOT a way
the SEC changes altered securities laws following the JOBS Act?
248. After operating for years as a privately held corporation, MidAtlantic Ironworks plans to
publicly trade its stock. As a midsized firm, MidAtlantic wants to avoid excessive paperwork, and
the fear of being delisted in the future. The ________ provides the best fit for MidAtlantic's plans.
249. Suzanne wants to purchase stock in a company that is headquartered in Germany.
Suzanne:
250. The Securities and Exchange Commission has accused Martha of benefiting unfairly from
information secured from a corporate officer of Stewart Engineering. Because Martha used that
information to profit in the stock market, she faces ________ charges.
251. Which of the following situations would be considered insider trading?
252. Although you were not fortunate enough to get Chipper's Golf Resort stock [ticker
symbol: CHPR] as an IPO, you are still thinking about trying to add some to your portfolio. Last
week when you mentioned it to your broker, he said that there are plenty of shares trading on
___________, but he wanted to send you the company's financial disclosures provided in the
______ before you finalize your decision.
253. Which of the following securities provides the owner the right to vote for the corporate
board of directors?
254. Two kinds of equity financing are:
255. A ________ certificate provides evidence of ownership in a specific corporation.
256. __________ represents the most basic form of company ownership and includes voting
rights and dividends, if and when the firm elects to pay dividends.
257. ___________ are the firm's after tax profits that are distributed to stockholders.
258. The dollar amount assigned to shares of stock by the corporation's charter represents the
stock's:
259. When investors purchase ________ stock, they receive a priority claim in the payment of
dividends, as well as assets, if the business is liquidated. However, these investors do not have
voting rights.
260. Investors in ________ preferred stock receive a guarantee that missed dividends will
accumulate and potentially be paid later.
261. Each share of common stock provides the investor with a ________ right that offers the
investor the first right to purchase any new shares of common stock the firm decides to issue.
This allows common stockholders to maintain a proportional share of ownership in the company.
262. When issuing stock to obtain long-term funding, dividend payments are:
263. Similar to bond investments, preferred shares can be ________, meaning the firm may buy
them back.
264. Stock certificates represent evidence of ownership in an organization. A stock certificate
contains which of the following?
265. Dividends are paid out of a corporation's:
266. Dividends on preferred stock are:
267. Which of the following securities guarantees preferred stockholders payment of missed
dividends before any dividends are paid to common stockholders?
268. Mark impresses his friends by stating that he just cast four votes in the election of the
board of directors of Microsoft, indicating that Mark owns __________ stock in Microsoft.
269. After many years as a privately held corporation, Connecticut Industries decided to offer
stock to the general public. Connecticut may discover that stockholders:
270. The disadvantages of selling stock to obtain long-term financing include:
271. When Tong Su purchased 500 shares of preferred stock in the Vibrates Corporation, his
certificate indicated the stock had a par value of $50 per share. This means that Tong Su:
272. Georgia Corporation, known for its very generous dividend policy, easily attracts
investors. These dividend payments basically represent:
273. Ellie owns stock in Rotary Technologies. Her stock provides a priority claim on dividend
payments and on the firm's assets in the event of liquidation. However, her ________ stock
ownership does not offer her voting rights.
274. Maureen owns 20% of the common stock of the Queen Bean Corporation. The company
announced plans to offer an additional 10,000 shares of common stock for sale. If Maureen
exercises her preemptive rights, Queen Bean must offer her the opportunity to purchase:
275. Greg purchased 2,000 shares of common stock of the Rite Track Corporation last year. He
learned several months later that the stock does not pay a dividend. Greg should proceed to:
276. Maggie owns 10% or 50,000 common shares of a small biotech company. Although she
has enjoyed a lot of control, Maggie realizes that in order for the firm to acquire the funds to grow
in a recessionary economy, it will need to issue more stock. Unless she and others exercise
preemptive rights,
277. A share of preferred stock currently sells for $120. It offers the investor a dividend rate of
8%, on a par value of $100. If the investor owns 500 shares, her total annual dividend will equal:
278. The corporate certificate issued to an investor that has loaned money to the corporation
or government is called a:
