Preferred stock is a special form of stock having a

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Preferred stock is a special form of stock having a fixed periodic dividend that must be paid prior to payment of any interest to 21. The par value on a common stock is used as a basis for determining 22. Common stock can be either privately owned by private investors or 23. The market value of common stock is related to its par value because both are sensitive to the reactions of investors to new information. 24. If bankruptcy were to occur, ______ would have the first claim on 27. 28. Holders of equity have claims on both income and assets that are 29.

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