41) A company would rarely sell its stock for below par value.
42) A corporation is not required to pay dividends.
43) Shares of outstanding stock always equal the number of shares of authorized stock.
44) A common shareholder's right to purchase an equivalent percentage of new stock is his preemptive right.
45) A corporation shares its profits with stockholders in the form of dividends.
46) Cumulative preferred stock means that the preferred stockholders have a right to a certain dividend every year.
47) The two main sources of stockholders' equity are investments by stockholders and net income retained in the corporation.
48) List and discuss the following:
a. Rights of common stockholders
b. Rights of preferred stockholders
