1. Which of the following is a difference between common stock and bonds?
a. Dividend paid to stockholders is tax-deductible but interest paid to bondholders are not.
b. Bondholders have a voice in management; common stockholders do not.
c. Stocks have a stated maturity but bonds do not.
d. Bondholders have a senior claim on assets and income relative to stockholders.
2. ________ are financial instruments that allow stockholders to purchase additional shares at a price below the market price, in direct proportion to their number of owned shares.
A. Preemptive rights
B. Treasury stocks
C. Proxy statements
D. Rights offering