SIE Exam Unit 2 question with complete solution rated A+ already passed 2023

SIE Exam Unit 2 question with complete solution rated A+ already passed 2023 What are the rights of common stockholders? - correct answer -They have the right to vote for corporate directors -Right to limited access of the corporation's books -Have the preemptive right to maintain their proportionate share of ownership in the corporation What is a proxy? - correct answer Agent that is legally authorized to act on behalf of another party or format that allows an investor to vote without being physically present in the meeting. Define growth (capital gains) - correct answer Profit realized when a capital asset is sold for a higher price than the purchase price. Limited Liability - correct answer An investor's right to limit potential losses to no more than the amount invested. Market Risk in Common Stock - correct answer Chance that the stock will decline in price. Decreased or No Dividend Income Risk in Common Stock - correct answer Possibility of dividend income decreasing or ceasing entirely if the company loses money Low Priority at Dissolution Risk - correct answer If a company goes bankrupt, holders of its bonds and preferred stock have priority over common stockholders. Bankruptcy - correct answer When a person or business cannot pay their outstanding debts. Two basic types or classifications; reorganization and liquidation