首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
•Read the article below about common stock and preferred stock. •For each question 13-18, mark one letter (A, B, C or D) on your
•Read the article below about common stock and preferred stock. •For each question 13-18, mark one letter (A, B, C or D) on your
admin
2010-01-22
309
问题
•Read the article below about common stock and preferred stock.
•For each question 13-18, mark one letter (A, B, C or D) on your Answer Sheet, for the answer you choose.
Common Stock and Preferred Stock
A public corporation issues certificates of ownership, called common stock, that may be traded on stock exchanges. Anyone can buy and sell shares of common stock. Owners of stock are referred to as shareholders and stockholders. Common stockholders are accorded certain rights by the corporate charter. In the United States, these rights vary from state to state, but in general the articles of incorporation spell out voting rights and rights to receive profits.
Common stockholders are the voting owners of a corporation. They are usually entitled to one vote per share. They may vote on numerous decisions affecting the corporation (including a derision to sell or merge with another corporation) and elect a board of directors, who, in turn, hire managers to run the business. A majority shareholder is one who owns over 50 percent of the outstanding (issued) shares in a corporation and, thus, can call the shots. All other shareholders are minority shareholders. In large corporations no single person or organization owns anywhere near a majority interest. In large, publicly owned corporations a shareholder with as little as 10 percent of the shares may control the corporation effectively. If things go badly, a coalition of so called dissident shareholders may gather enough votes to replace the existing board of directors; the new hoard may fire the existing management and bring in their own management team.
Although common stock represents ownership in a company, it does not guarantee the owners a specific rate of return. As owners, the stockholders receive profits after all expenses, including debts and taxes, have been paid. They receive profits from the business in the form of dividend payments, which represent a percent-age of profits. Not all after-tax profits are paid to the stockholders in dividends. Directors usually deride quarterly how much, if any, of the profits they wish to distribute to the owners. The profits are either distributed to the owners in dividends or they are reinvested back into the company in the form of retained earnings. If the company decides to keep the profits, the company may become more valuable and the price of the stock usually goes up. Some investors prefer profits in the way of dividends while others speculate for an increase in the price of stock. If a company goes broken, common stockholders get last claim on whatever is left over.
Corporations may also issue preferred stock to investors. Preferred stock usually has no vote in the election of the bard of directors, but does get preference in the distribution of the company’s earnings. It offers investors a different type of security and may be issued only after common stock has been issued. The term "preferred" applies to two conditions. First, preferred stockholders gain preferential treatment in the matter of dividends; that is, they receive a fixed rate of dividends prior to the payment of dividends on common shares. Second, if the company goes out of business or liquidates, pregerred stockholders are closer to the front of the line than common stockholders! when distributing the company’s assets.
Dividends to preferred stock may be cumulative or noncumulative. Cumulative preferred stock maintains its claim to dividends even if the company decides not to pay them. For instance, if the company had a bad year in 1994, they might decide not to pay dividends. But if they had a good year in 1995. noncumulative preferred stock dividends do not accumulate. If dividends are not declared, noncumulative owners lose their claim to the profit of that period.
In short, common stock usually has more control through voting privileges, greater chance for high returns, and more risk, whereas preferred stock usually has less control, fixed returns, less risk, and less chance for big gains.
With cumulative preferred stock, stockholders can ______ .
选项
A、claim to the former profits when the company has a good year
B、have more control over the company
C、claim to the former profits when the company has a bad year
D、receive high returns
答案
A
解析
转载请注明原文地址:https://jikaoti.com/ti/9eTYFFFM
本试题收录于:
BEC中级阅读题库BEC商务英语分类
0
BEC中级阅读
BEC商务英语
相关试题推荐
Readthearticlebelowaboutcustomerrelationshipmanagement.ChoosethecorrectwordorphrasetofilleachgapfromA,B,Co
Readthearticlebelowaboutworkingabroadforyourcompany.Foreachquestion(31-40),writeonewordinCAPITALLETTERSonyou
Readthearticlebelowaboutworkingabroadforyourcompany.Foreachquestion(31-40),writeonewordinCAPITALLETTERSonyou
Readthearticlebelowaboutworkingabroadforyourcompany.Foreachquestion(31-40),writeonewordinCAPITALLETTERSonyou
Readthetextbelowaboutdecidingwhattopay.Inmostofthelines41—52thereisoneextraword.Itiseithergrammaticallyi
Readthetextbelowaboutdecidingwhattopay.Inmostofthelines41—52thereisoneextraword.Itiseithergrammaticallyi
Readthetextbelowaboutdecidingwhattopay.Inmostofthelines41—52thereisoneextraword.Itiseithergrammaticallyi
Readthistexttakenfromanarticleaboutsomekeyaspectsofoperationsmanagement.Choosethebestsentencetofilleachoft
Readthistexttakenfromanarticleaboutsomekeyaspectsofoperationsmanagement.Choosethebestsentencetofilleachoft
Readthetextbelowabouttelevisionnetwork.Inmostofthelines41—52thereisoneextraword.Itiseithergrammaticallyinc
随机试题
大环内酯类抗生素的作用机制是
患者出现缺O2和CO2潴留,此时的呼吸衰竭属于
某新厂建成后欲生产甲、乙、丙三种产品,经调查,甲产品现已有推荐性行业标准,乙产品已有推荐性国家标准,丙产品目前尚无相应的国家标准、行业标准和地方标准。该厂管理者为了提高质量管理水平,准备申请质量管理体系认证,应当采用_________标准建立质量管理体
下列( )可属于集体所有或私人所有的文物,其所有权受法律保护。
学生是生活在一定社会关系中的具有特定的()属性的人。
马克思主义哲学以前的唯物主义的主要缺陷是()。
面包制作过程中使用酵母主要是利用其哪一种特性?
whisperedinterpreting
I’llbewithyouin______.
Digitalcamerasarehot.Everyphotographylover,itseems,eitherhasanewdigitalcameraoristhinkingaboutgettingone.If
最新回复
(
0
)