Which one of the following statements about common stock is correct?
A) Each share of stock has a specified maturity date.
B) Common stock gives stockholders first title to a share of the company's earnings, prior to other corporate obligations.
C) Common stock typically provides higher levels of current income than do similar grade corporate bonds.
D) Each share of common stock of a given class entitles the holder to an equal ownership position and an equal vote in the corporation.
Answer: D
You might also like to view...
To avoid problems, a statement of a contingency should not
a. have an expiration date b. be explicit and clear. c. be excessive in duration. d. expressly require diligence in the effort to fulfill the requirement.
Which of the following is true when the stock price follows geometric Brownian motion
A. The future stock price has a normal distribution B. The future stock price has a lognormal distribution C. The future stock price has geometric distribution D. The future stock price has a truncated normal distribution