Which of the following statements regarding stock trading is INCORRECT? A. Stock

Question

Which of the following statements regarding stock trading is INCORRECT?
A. Stock that has priority for dividends and bankruptcy liquidation is called
equity stock.   
B. Proxy voting is the voting procedure where shareholders grant authority to
another individual to vote their shares.   
C. Capital gains yield is the rate at which the stock price is expected to appreciate.   
D. The short alphabetic abbreviation for an exchange-listed stock by which the issue is identified in the market is called the stock's ticker symbol.

Explanation / Answer

Solution:

A. Stock that has priority for dividends and bankruptcy liquidation is called equity stock.

Equity stock is known to have no priority for dividends and is the last liabilit that is considered for being paid off on bankruptcy liquidation after all other liabilities of the firm are completely paid off.

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