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.

Question

Quizplus · Accepted Answer

Common stock represents ownership in a company, and each share of a given class provides the shareholder with an equal ownership stake and voting rights in corporate decisions, distinguishing it from other securities like bonds or preferred stock that have different characteristics such as fixed income or priority in earnings.

Which One of the Following Statements About Common Stock Is