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12. Which of the following is INCORRECT regarding stocks? ...

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Finance

12.

Which of the following is INCORRECT regarding stocks?

Shareholders have the lowest claim to cash flows after other stakeholders of the company.

Stocks are generally riskier than bonds.

An already public company issuing more shares to raise capital is referred to as an SEO.

Mature companies with more stable cash flows are more likely to pay dividends.

Average dividend payout ratio of U.S. companies has been increasing over time.

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