ecording Whiteboa Elag for R Thomas purchased 500 common shares of Pittfield Inc. Lauren purchased 300 preferred shares of the same company. What benefit does Thomas have that Lauren does not have? O Thomas will be able to vote on issues at the company's next annual meeting while Lauren most likely cannot. O Thomas will receive a guaranteed dividend from his common shares, Lauren's dividends are at the discretion of the directors of the company. O In the event of bankruptcy, Thomas will have first claim to the assets before Lauren. ○ Thomas can sell his shares on the stock market while Lauren must sell them back to the company. Flag for Revie Julie works in the Compliance Department of a mutual fund dealer and detects a high volume of transactions in a mutual fund account for a client. In the account, a number of funds are sold and new funds that are similar are purchased. What does this pattern suggest? the account is being churned to generate commissions the account is market timing to manipulate bond prices the account is day trading to manipulate stock prices the account is being traded against high frequency trading rules
ecording Whiteboa Elag for R Thomas purchased 500 common shares of Pittfield Inc. Lauren purchased 300 preferred shares of the same company. What benefit does Thomas have that Lauren does not have? O Thomas will be able to vote on issues at the company's next annual meeting while Lauren most likely cannot. O Thomas will receive a guaranteed dividend from his common shares, Lauren's dividends are at the discretion of the directors of the company. O In the event of bankruptcy, Thomas will have first claim to the assets before Lauren. ○ Thomas can sell his shares on the stock market while Lauren must sell them back to the company. Flag for Revie Julie works in the Compliance Department of a mutual fund dealer and detects a high volume of transactions in a mutual fund account for a client. In the account, a number of funds are sold and new funds that are similar are purchased. What does this pattern suggest? the account is being churned to generate commissions the account is market timing to manipulate bond prices the account is day trading to manipulate stock prices the account is being traded against high frequency trading rules
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:ecording
Whiteboa
Elag for R
Thomas purchased 500 common shares of Pittfield Inc. Lauren purchased 300 preferred shares of the same company. What benefit
does Thomas have that Lauren does not have?
O Thomas will be able to vote on issues at the company's next annual meeting while Lauren most likely cannot.
O Thomas will receive a guaranteed dividend from his common shares, Lauren's dividends are at the discretion of the directors of
the company.
O In the event of bankruptcy, Thomas will have first claim to the assets before Lauren.
○ Thomas can sell his shares on the stock market while Lauren must sell them back to the company.
Transcribed Image Text:Flag for Revie
Julie works in the Compliance Department of a mutual fund dealer and detects a high volume of transactions in a mutual fund account
for a client. In the account, a number of funds are sold and new funds that are similar are purchased.
What does this pattern suggest?
the account is being churned to generate commissions
the account is market timing to manipulate bond prices
the account is day trading to manipulate stock prices
the account is being traded against high frequency trading rules
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