Which of the following is a true statement regarding stock investments?
A)A corporation generally obtains equity capital from bondholders.
B)A corporation must issue preferred stock before issuing common stock.
C)When a corporation is experiencing financial problems,an investor should purchase common rather than preferred stock.
D)Corporations are required to pay dividends every year.
E)There are no guarantees that a stock's value will go up after you purchase it.

Question

Quizplus · Accepted Answer

Stock investments carry no guarantee of profit, and the value of stocks can fluctuate based on a wide range of factors. Unlike bonds, where there are fixed interest payments, stock investments can result in losses if the stock's value decreases.

Which of the Following Is a True Statement Regarding Stock