Which of the following is not true of common stock?
A) Common stock represents partial ownership in the firm.
B) Common stock is riskier than preferred stock.
C) Investors in common stock are given voting rights.
D) Investors in common stock are guaranteed a dividend.

Question

Quizplus · Accepted Answer

Investors in common stock are not guaranteed a dividend. Dividends are paid at the discretion of the company's board of directors and can vary in amount or not be paid at all, depending on the company's performance and financial health.

Which of the Following Is Not True of Common Stock