Question

1. A rights offering is the

A) initial offering of securities to the public.
B) offering of new securities to current shareholders on a pro-rata basis.
C) sale of newly issued shares of stock to the general public.
D) sale of securities directly to a select group of investors.

2. T or F : Preferred stock never votes.

3 --T or F: Common shareholders who are the real owners of the company rarely get their investment back in bankruptcy, even after the preferred shareholders.

4 T or F: When the preferred rights offering window closes, the company will not exclusively sell the new issue to the shareholders.

5 --Why is book inspection a limited right? Is there an exception? 2 questions

6 --Common shareholders are the last ones to be paid from the liquidation proceeds of a company. That is a privilege called _________________.

7 --The numerator in Tobin’s Q represents_______________________________

8 T or F: A value stock returns a steady rate of dividend pay-outs and will maintain its worth in the market.

9 T or F: A growth stock pays its investors in capital gains rather than in dividend yield.

Answer 1

1. B - offering of new securities to current shareholders on a pro-rata basis.

2. True

3. True

4. True

6. Residual investor

7. Total market Value

8. False

9. True