Which statement about "common shares" is correct?
A)Common shares have the lowest claim to residual ownership interest of all shares.
B)Common shares have the lowest priority of all shares issued by a company.
C)Common shares have the highest priority of all shares issued by a company.
D)Common shares have no claim to residual ownership interest of all shares.

Question

Quizplus · Accepted Answer

Common shares have the lowest priority in terms of claims on assets and earnings, meaning they are paid after preferred shareholders and debt holders in the event of liquidation.

Which Statement About "Common Shares" Is Correct