7) IPOs that are generally made available to the average
investor tend to be the less desirable new offerings.
true or false
8) Shareholders have the option of selling their rights granted via
a rights offering.
true or false
15) With respect to dividend payments on stocks, the date of record
is the date on which the payment is actually paid.
true or false
16) Investors should never pay more than par value for a
stock.
true or false
18) Reinvested dividends
A. are taxed when the shares purchased with the reinvested dividend are sold.
B. are taxed at the time the dividend is paid.
C. do not increase the value of an investors holdings.
D. are generally sold at a premium over the market price.
19) Different classes of stock generally have either different
voting rights or different dividends.
true or false
22) If a corporation opts for a rights offering, the current
shareholders are obligated to purchase their proportional share of
the offering.
true or false
29) If a corporation declares a 10% stock dividend, then
A. the share price of the stock will most likely decline by about 9%.
B. the share price of the stock will most likely increase by about 10%.
C. the share price of the stock will most likely remain unchanged.
D. each shareholder will get a 10% cash rebate off his or her
next round lot purchase of the stock.
7) IPOs that are generally made available to the average
investor tend to be the less desirable new offerings.
false
8) Shareholders have the option of selling their rights granted
via a rights offering.
true
15) With respect to dividend payments on stocks, the date of
record is the date on which the payment is actually paid.
false
16) Investors should never pay more than par value for a
stock.
false
18) Reinvested dividends
A. are taxed when the shares purchased with the reinvested dividend are sold.
19) Different classes of stock generally have either different
voting rights or different dividends.
true
22) If a corporation opts for a rights offering, the current
shareholders are obligated to purchase their proportional share of
the offering.
false
29) If a corporation declares a 10% stock dividend, then
A. the share price of the stock will most likely decline by about 9%.
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