Asked by Cristian Perez Lara on Jul 26, 2024
Verified
The term __________ is usually applied to stock that has no special preference either in paying dividends or in bankruptcy.
A) Preferred stock.
B) Debenture.
C) Common stock.
D) Cumulative voting.
E) Proxy
Preferred Stock
A type of stock that typically pays fixed dividends and has priority over common stock in the event of a liquidation.
Common Stock
A type of security that represents ownership in a corporation, entitling the holder to a share of the company’s assets and profits.
Dividends
Periodic payments made to shareholders, reflecting a portion of a company's profit.
- Distinguish between the traits and rights of preferred and common stock.
Verified Answer
NS
Naimah SlaughterJul 30, 2024
Final Answer :
C
Explanation :
Common stock typically has no special preferences in terms of dividend payments or claims on assets in the event of bankruptcy, distinguishing it from preferred stock and other securities.
Learning Objectives
- Distinguish between the traits and rights of preferred and common stock.