You have just been to see your broker at Acclaim Capital Inc. for advice about investing in

Question:

You have just been to see your at Acclaim Capital Inc. for advice about investing in the Empire Bank. The indicates that the Empire Bank has three different types of securities: debt, preferred shares, and common shares. She states: “Debt is safe because it is a bank and Canadian banks are safe. Empire Bank preferred shares entitle you to vote at the annual general meeting. The Empire Bank has paid a common share of $2.50 per year for the past 18 years so you are guaranteed to receive $2.50 next year; if you don’t, the bank will go bankrupt.” Comment on your broker’s statement. Is she correct?

Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...