Asked by Iqbal Qayum on May 12, 2024
Verified
Because it historically provides a positive return, common stock is typically classified as a real asset.
Common Stock
A type of security that represents ownership in a corporation, granting shareholders voting rights and a share in the company's profits via dividends.
Real Asset
Physical or tangible assets that have value, such as real estate, commodities, and natural resources.
- Identify the distinctions between tangible and monetary assets.
Verified Answer
AS
Alexus SeatonMay 18, 2024
Final Answer :
False
Explanation :
Common stock is classified as a financial asset because it represents a claim on the earnings and assets of a corporation, not a tangible or real asset like property or equipment.
Learning Objectives
- Identify the distinctions between tangible and monetary assets.