It is common to refer to common stockholders as the \"owners\" of a firm, becaus

Question

It is common to refer to common stockholders as the "owners" of a firm, because investors in common stock have certain rights and privileges generally associated with property ownership. Common stockholders bear most of the risk associated with a firm's operations, but they tend to benefit the most when a firm performs well. Each of the statements below describes a term associated with common stock. Identify which statement corresponds with each term listed in the table below: Equity, or common stock, trades on stock markets all around the world. Because of globalization, the lines between equity markets are being blurred. In many cases, multinational firms sell equity in foreign equity markets. In other words, they sell stock on exchanges outside of their home country. The statement above is an example of which of the following? A Euro stock An American Depository Receipt (ADR) A Yankee stock

Explanation / Answer

Statement 1 : Growth Stock

Statement 2 : Income stock

Statement 3 : Preemptive Rights

Statement 4: Proxy

Last statement referes to:

An American Depository Receipt (ADR)

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