This quiz is a part of the CFA Level 1 reading 'Overview of Equity Securities'. 

Overview of Equity Securities

The common shareholders have the right to vote on certain issues in the company.

The common shareholders receive guaranteed dividends from the profits of the company.

The common shares are less risky compared to preferred shares.

A shareholder may give all the votes he/she holds to a single candidate.

Cumulative voting favors minority shareholders.

Participating preference shares receive additional profits.

In participating preference shares, dividend accumulates if it is not paid in a given year. 

Participating preference shares receive voting rights

ADRs are denominated in US dollars and issued in the US.

GDRs are generally denominated in US dollars but issued outside the US.

GDRs are generally denominated in a foreign currency and issued in the US.

Raising more debt and use it to repurchase equity.

Net income is increasing but at a faster rate than book value of equity.

Net income is decreasing but at a slower rate than book value of equity.

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