Question: Identify whether the key characteristic describes common stock (CS) or preferred stock (PS). ________ 1. Source of financing which places minimum constraints on the firm

  1. Identify whether the key characteristic describes common stock (CS) or preferred stock (PS).

________ 1. Source of financing which places minimum constraints on the firm

________ 2. Used by young firms receiving investment funds from venture capital firms

________ 3. Potential dilution of earnings and voting power

________ 4. Fixed financial obligation

________ 5. Increases the firm's borrowing power

________ 6. May have cumulative and participating features

________ 7. May be convertible into another type of security

________ 8. Last to receive earnings or distribution of assets in the event of bankruptcy

________ 9. Frequently includes a call feature

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