金融市场与机构Madura第九版题库ch10.doc

PAGE 16 ? Stock Offerings and Investor Monitoring Stock Offerings and Investor Monitoring ? PAGE 15 ? 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. ? 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. ? 2010 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 10 Stock Offerings and Investor Monitoring 1. Which of the following statements is incorrect? A) A stock is a certificate representing partial ownership in a corporation. B) Like debt securities, common stock is issued by firms to obtain funds. C) Stocks are issued by corporations to raise short-term funds. D) The secondary stock market enables investors to sell stocks that they had previously purchased. ANSWER: C 2. Preferred shareholders A) typically have the same voting rights as common shareholders. B) do not share the ownership of the firm with common shareholders. C) typically participate in the profits of the firm beyond the stated fixed annual dividend. D) may not receive a dividend every year. ANSWER: D 3. From a cost perspective, preferred stock is a less desirable source of capital for a firm than bonds. A) True B) False ANSWER: A 4. A ______ requires that dividends cannot be paid on common stock until all current and previously omitted dividends are paid on preferred stock. A) residual claim B) preferred margin C) cumulat