Match each specific investor objective or corporate capital scenario on the left with the equity security class or characteristic on the right that precisely addresses it.
- An income-focused investor requiring protection against skipped corporate dividend payments, ensuring all prior unpaid distributions are settled before any common stock dividend can be declared.Cumulative Preferred Stock
- An investor seeking equity income who wants a fixed dividend rate plus the contractual right to receive additional dividend distributions if company earnings surpass a specified benchmark.Participating Preferred Stock
- A common shareholder who wishes to maintain their exact percentage ownership in a corporation by purchasing shares of a new stock issuance prior to a public offering.Preemptive Rights (Rights Offering)
- A domestic investor seeking convenience in trading non-U.S. corporate shares while benefiting from currency conversion and dividend collection handled by a U.S. depositary bank.American Depositary Receipts (ADRs)
Cevap
The correct pairings match the investor scenarios to their respective equity features: (1) Protection against skipped dividend payments matches Cumulative Preferred Stock; (2) Fixed dividend plus extra earnings participation matches Participating Preferred Stock; (3) Right to purchase new shares to prevent ownership dilution matches Preemptive Rights; and (4) Trading foreign corporate equity in U.S. domestic markets matches American Depositary Receipts.
Each feature aligns directly with its underlying contract: cumulative preferred stock guarantees arrears settlement before common dividends; participating preferred stock allows dividend sharing beyond stated rates; preemptive rights protect proportional equity ownership; and ADRs facilitate U.S.-based trading of foreign equities.
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Anahtar Kavram
Equity Securities and Characteristics