Identify whether the key characteristic describes common


Identify whether the key characteristic describes common stock (CS) or preferred stock (PS).

_____ 1.   Source of financing which places minimum constraints on the firm.

_____ 2.   Used often in mergers.

_____ 3.   Potential dilution of earnings and voting power.

_____ 4.   Fixed financial obligation.

_____ 5.   Increases the firm's borrowing power.

_____ 6.   May have cumulative and participating features.

_____ 7.   May be convertible into another type of security.

_____ 8.   Last to receive earnings or distribution of assets in the event of bankruptcy.

_____ 9.   Frequently includes a call feature

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Financial Management: Identify whether the key characteristic describes common
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