A corporation can issue both common and preferred stock.

Name: A corporation can issue both common and preferred stock.
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Question

Quizplus · Accepted Answer

A corporation has the ability to issue both common and preferred stock to raise capital. Common stock represents ownership in the company and provides voting rights to the shareholders. Preferred stock represents a priority claim over common stock in terms of dividends and liquidation proceeds, but typically does not provide voting rights.

A Corporation Can Issue Both Common and Preferred Stock