Which one of the following guarantees is offered to common stock investors?
A) Guarantee to receive dividends
B) Guarantee to receive capital gains
C) Guarantee only to receive a refund of principal
D) No guarantees of any form

Question

Quizplus · Accepted Answer

Common stock investors have no guarantees of any form. Dividends and capital gains are dependent on the performance of the company and the stock market, and there is no guarantee that the investor will receive a return on their investment. The only guarantee is the right to vote at shareholder meetings and potentially receive a portion of the company's assets in the event of liquidation.

Which One of the Following Guarantees Is Offered to Common