Which of the following is correct with regard to common stock?
A) The Revised Act has eliminated the terms "preferred" and "common."
B) Common stock does not have any special contract rights or preferences.
C) Common stock generally bears the greatest risk of loss in the event of the failure of the enterprise.
D) All of these are correct with regard to common stock.

Question

Quizplus · Accepted Answer

All of the statements are correct regarding common stock. The Revised Act has eliminated the terms "preferred" and "common," meaning that all stocks are simply considered "shares" with equal rights. Common stock does not have any special contract rights or preferences and generally bears the greatest risk of loss in the event of the failure of the enterprise.

Which of the Following Is Correct with Regard to Common