Corporations often raise funds for business activities by the sale of shares of existing common stock.
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Q31: Bondholders have a "prior claim" over stockholders
Q32: Corporations must always pay dividends to their
Q33: "Common stock" is the type only sold
Q34: For a corporation, issuing bonds is riskier
Q35: If a firm goes bankrupt, the bondholders
Q37: Holders of shares of common stock in
Q38: A stockholder's investment is usually riskier than
Q39: Issuing stock is riskier for corporations since
Q40: Business firms are prohibited by law from
Q41: An individual investor can reduce the risk
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