Solved

Match the Following with the Items Below

Question 103

Matching

Match the following with the items below:

Premises:
Shareholders are allowed to multiply their total shares times the number of directors being elected to determine their total number of votes.
The privilege accorded to current common stockholders of maintaining their ownership percentage on new issues of common stock.
The situation where the purchase of common stock includes an equal number of rights attached to the stock.
A situation where purchase of common stock during a rights offering no longer includes rights to purchase additional shares of common stock.
All directors may be elected by a vote of more than 50%.
Arises from the sale of new common stock to current stockholders.
Holders of this security are the owners of the company.
Specifies the amount of cash or equity that must be deposited with a brokerage firm, with the balance of funds eligible for borrowing.
A hybrid security combining features of both common stock and debt.
Responses:
ex-rights
preferred stock
cumulative voting
rights offering
common stock
preemptive right
majority voting
rights-on
margin requirement

Correct Answer:

Shareholders are allowed to multiply their total shares times the number of directors being elected to determine their total number of votes.
The privilege accorded to current common stockholders of maintaining their ownership percentage on new issues of common stock.
The situation where the purchase of common stock includes an equal number of rights attached to the stock.
A situation where purchase of common stock during a rights offering no longer includes rights to purchase additional shares of common stock.
All directors may be elected by a vote of more than 50%.
Arises from the sale of new common stock to current stockholders.
Holders of this security are the owners of the company.
Specifies the amount of cash or equity that must be deposited with a brokerage firm, with the balance of funds eligible for borrowing.
A hybrid security combining features of both common stock and debt.
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