Which of the following statements is incorrect regarding common stock?
A) Common stock is issued more narrowly than preferred stock.
B) The common stockholders have voting rights.
C) The common stockholders get paid after the creditors in the event the liquidation of the corporation.
D) Common stock is the form of stock that most shareholders of a corporation own.
E) The common stockholders elect the board of directors.

Question

Quizplus · Accepted Answer

This statement is incorrect as common stock is actually issued more widely than preferred stock. Common stock is the most common form of stock that is issued by corporations. Preferred stock, on the other hand, is issued less frequently and usually comes with a set dividend payment.

Which of the Following Statements Is Incorrect Regarding Common Stock