Question

8. If you will lend a certain amount of money, what interest scheme would you choose?
a. 2% compounded quarterly
C. 10% compounded semiannually
6.5% simple interest
d. 10% simple interest
9. If a fund gives an interest compounded quarterly in 2 years, how many conversion periods are there?
2.
a. 2
6.4
d. 8
10. What do we call the annuity which payments are made at the end of each payment interval?
a. annuity due
C. ordinary annuity
b. general annuity
d. simple annuity
11. Who among the following are the last to claim in the earnings of a company?
a. common stockholders
c. preferred stockholders
b. downholders
d. bondholders
12. Which of the following statements is TRUE about stocks?
a. A form of Financing money by allowing investors to be lenders of the company
b. Investors are guaranteed interests and return of their money on the maturity date
c. Higher risk but with possibility of higher returns
d. Investors are not allowed to particiate in company meetings​

Answer 1

Answer:

Broadly speaking, there are two main types of stocks, common and preferred. Common stockholders have the right to receive dividends and vote in shareholder meetings, while preferred shareholders have limited or no voting rights. Preferred stockholders typically receive higher dividend payouts, and in the event of a liquidation, a greater claim on assets than common stockholders will.