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Which of the Following Is a True Statement Regarding Stock

Question 50

Multiple Choice

Which of the following is a true statement regarding stock investments?


A) A corporation generally obtains equity capital from bondholders.
B) A corporation must issue preferred stock before issuing common stock.
C) When a corporation is experiencing financial problems,an investor should purchase common rather than preferred stock.
D) Corporations are required to pay dividends every year.
E) There are no guarantees that a stock's value will go up after you purchase it.

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