1. In the event of bankruptcy, which of these financial instruments comes last in receiving the proceeds from liquidation?
A. Money owed to a bank.
B. Common stock
C. Preferred stock.
D. Money owed to bond holders
2. Which of these statements is NOT correct
A. Investors in Common stock look for appreciation in the stock price and the possibility of dividends.
B. Investors in Preferred stock hope to see growth in the dividend it pays over time.
C. Investors in Bonds recognize that many factors influence the change in price of this instrument, including: how interest rates change, how the company’s riskiness changes, and how close to maturity they are.
D. Investors in annuities lock in the periodic payments they’ll be receiving, thereby establishing the inherent interest rate upfront.