Which one of the following types of stock is defined by the fact that it receives no preferential treatment in respect to either dividends or bankruptcy proceedings?
A) Dual class
B) Cumulative
C) Non-cumulative
D) Preferred
E) Common

Question

Quizplus · Accepted Answer

Common stock is defined by the fact that it receives no preferential treatment in respect to either dividends or bankruptcy proceedings. Preferred stock, on the other hand, typically receives priority treatment over common stock in both situations. Dual class, cumulative, and non-cumulative stock are not directly related to preferential treatment in dividends or bankruptcy proceedings.

Which One of the Following Types of Stock Is Defined