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Questions and Answers
Which statement best describes the position of preferred stock in a company's capital structure?
Which statement best describes the position of preferred stock in a company's capital structure?
- Preferred stock has no specific ranking in the capital structure and is treated the same as ordinary shares.
- Preferred stock ranks behind both ordinary shares and debt holders in the event of liquidation.
- Preferred stock ranks ahead of ordinary shares but after debt holders in the event of liquidation. (correct)
- Preferred stock ranks ahead of both ordinary shares and debt holders in the event of liquidation.
What is the primary distinguishing feature of preferred stock compared to ordinary shares?
What is the primary distinguishing feature of preferred stock compared to ordinary shares?
- Preferred stock carries a fixed dividend that must be paid before ordinary shareholders receive anything. (correct)
- Preferred stockholders have a higher claim on the company's assets than ordinary shareholders.
- Preferred stock can be easily converted to ordinary shares at any time.
- Preferred stockholders have voting rights, while ordinary shareholders do not.
Which of the following statements about preferred stock is true?
Which of the following statements about preferred stock is true?
- Preferred stock is technically an equity investment but has investment characteristics more like corporate bonds. (correct)
- Preferred stock is considered part of the equity asset class.
- Preferred stock is a type of debt instrument issued by companies.
- Preferred stock is a hybrid security that combines characteristics of both debt and equity instruments.
If a company is liquidated, which group would receive any residual value after preferred stockholders and debt holders have been paid?
If a company is liquidated, which group would receive any residual value after preferred stockholders and debt holders have been paid?
Which of the following statements is NOT true about preferred stock?
Which of the following statements is NOT true about preferred stock?
What was the primary driver behind the exponential growth of ETFs since their inception in the early 1990s?
What was the primary driver behind the exponential growth of ETFs since their inception in the early 1990s?
Which of the following best describes the evolution of ETF investment strategies over time?
Which of the following best describes the evolution of ETF investment strategies over time?
What is the key factor that has contributed to the significantly higher growth trajectory of ETFs compared to traditional mutual funds?
What is the key factor that has contributed to the significantly higher growth trajectory of ETFs compared to traditional mutual funds?
How have active ETFs impacted the overall ETF market landscape?
How have active ETFs impacted the overall ETF market landscape?
Which of the following statements is true regarding the global ETF market size and growth trends?
Which of the following statements is true regarding the global ETF market size and growth trends?
What is the primary reason why ETFs have become the go-to choice for many investors seeking diversification and liquidity?
What is the primary reason why ETFs have become the go-to choice for many investors seeking diversification and liquidity?
Which of the following statements accurately describes the role of active ETFs?
Which of the following statements accurately describes the role of active ETFs?
How do regulatory frameworks for ETFs differ between the United States and Europe?
How do regulatory frameworks for ETFs differ between the United States and Europe?
Which of the following statements accurately describes the types of ETFs available in the market?
Which of the following statements accurately describes the types of ETFs available in the market?
Which of the following statements accurately describes the advantages and disadvantages of ETFs?
Which of the following statements accurately describes the advantages and disadvantages of ETFs?
Which of the following statements accurately describes the market impact and future outlook of ETFs?
Which of the following statements accurately describes the market impact and future outlook of ETFs?
Which of the following statements is true regarding the role of investors in the ETF market?
Which of the following statements is true regarding the role of investors in the ETF market?
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