What is the main source of funds for most companies? What is meant by the company's financial deficit? (page 386)
How is it possible for issues of shares to be negative? (page 386)
What are treasury shares? (page 390)
What is meant by residual cash flow rights and residual control rights? (pages 391-392)
What is the difference between majority voting for directors and cumulative voting? (pages 392-393)
Why would investors be prepared to pay more for shares with superior voting rights? (page 393)
In what ways is preferred stock like debt? In what ways is it like common stock? (page 396)
Corporate debt may be (a) fixed or floating rate, (b) a domestic dollar bond or a Eurobond, (c) senior or subordinated, and (d) convertible or non-convertible. Explain each of these distinctions. (pages 397-398)
Why are financial intermediaries different from a manufacturing corporation? (page 400-401)
How do financial intermediaries contribute to the functioning of the economy? Give three examples. (pages 401-402)
