1. Corporate dividends:
[A] are always source of tax-free income for individual investors.
[B] are taxed at the personal level even though they are paid from aftertax income.
2. The owner of preferred stock:
[A] is entitled to a distribution of income prior to the common shareholders.
[B] is always guaranteed voting rights similar to a common shareholder.
3. The market in which new securities are originally sold to investors is called the _____ market.
[A] secondary
[B] primary
4. Preferred stock always has the right to vote.
[A] True
[B] False
5. A market participant who buys and sells securities from inventory is called a dealer.
[A] True
[B] False