41 a company would rarely sell its stock for below par value 42 a corporation is not 4303107


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




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