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Question 1 (1 point) The market where shares of a company are made available to

ID: 2788131 • Letter: Q

Question

Question 1 (1 point) The market where shares of a company are made available to the public for the first time in an IPO. Tertiary Venture Primary Save Question 2 (1 point) Common Stock carries all of the following characteristics, EXCEPT: Dividends High Risk Refund Option Voting Rights Save Question 3 1 point Preferred Stock carries all of the following characteristics, EXCEPT Less volatility than Common Stock Greater Voting Rights than Common Stock Less risk than Common Stock More reliable Dividends than Common Stock Save Question 411 point) When shares are traded in the secondany market, the issuing company shares in the loss/sain of te transaction True False

Explanation / Answer

Answer 1 Correct answer is D, Primary market is market where securities are first sold as an initial public offering and the company receives the proceeds

Answer 2 Correct answer is C, common stock does not have refund option. They have characteristics of dividend payment, High risk and common stock contain voting right as well.

Answer 3 Correct answer is B, preferred stock does not have voting right generally common stock have voting right. All other feature like less volatility, less risk and more risk are features of common stock.

Answer 4 False, when shares are traded in secondary market investor who holds shares of the company have loss or gain