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Which of the following securities most likely provides voting rights to investors ?
Common shares
preferred shares
Global depositary recepits

The right to elect members of the board of directors of a company belongs to
senior management
common shareholders
preferred shareholders

Which of the following is most likely an advantage of owning common stock ?
Low risk
Finite life
Limited liability

The key diference between cumulative preferred stock and non cumulative preffered stock relates to :
voting rights
the treatment of missed dividends
the company's ability to bjuy back preferred shares

Compared to preferred share holder , a common shareholder most likely has:
voting rights
limited liability
cash flow rights

Compared with preferred shareholders , the ranking of common share holders in the prioirty of claims on the company's net assets upon liquidation is :

A security representing an economic interest in a foreign company that tradeslike a common stock on a local stock exchange is most likely a :
convertable bond
global depositary receipt

Global depository receipts (GDR's) are issued by :
financial institutions
company's whose shares represented by the GDR's

If the price of a companies common shares increases significantly , the conversion value of a convertable bond issued by that company most likely :
remanins unchnaged

Stock options issued by a company to its employees asa form of compnesation area an example of :
convertable bonds
global depositary receipts

Compared with common shares , an investment in prefered shares is most likely to be :
less risky
more risky
equally risky

The discounted cash flow approch to valuation of a company's common shares is most likely considers the :
expected dividends on the shares
current value of company;s assets
price to earnings ratios of comparable companies

The approch to valuating common shares thats uses price multiples of other similar publicaly traded comparable equity securities best describes
relative valuation
asset based valuation
discounted cash flow valuation

A company that needs to raise capital in a public market for the first time would most likely :
repurchase shares
conduct intial public offering
conduct a seasoned equity offering

Which of the following corporate actions would decrease a company's number of outstanding shares ?
Share Repurchase
Exercise of warrants
Secondary Equity offering

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Skills for Banking|Financial Services|Insurance

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