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

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 1SCQ: Answer these three questions about early-stage corporate finance: Why do very small companies tend...
Question

PLS HELP ASAP ON BOTH

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: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
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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning