Investing in Stocks. Basics 3

A dividend is a portion of the company's profits paid to its shareholders.

• True
• False

If a company issues dividends, preferred stock holders are paid the dividends first.

• True
• False

Holders of preferred stock usually do not have voting rights

• True
• False

Common stock is more prone to rapid changes; therefore, there is more risk associated.

• True
• False

Preferred stock means the company is preferred over other companies in a particular industry.

• True
• False

Type of stock owned by voting members

• Income

• Growth

• Preferred

• Common

Shares of a company that do not guarantee a dividend and have more risk and volatility.

• common stock
• preferred stock
• preferential stock
• basic stock

Holders of this stock have the right to vote for the Board of Directors as well as issues that come before the board at the annual stockholders meeting.

• Basic stock
• Preferred stock
• Preferential stock
• Common stock

This type of stock pays the investors a fixed dividend.

• Common Stock

• Preferred Stock

• Growth Stock

• All Stocks do this

Profits represent ownership of shares of a company.

• True
• False