The basic form of capital stock is:
A)a share of preferred stock.
B)a share of common stock.
C)par value stock.
D)the corporate charter.

Question

Quizplus · Accepted Answer

The basic form of capital stock is a share of common stock. Common stock represents ownership in a company and provides voting rights to shareholders. Preferred stock, on the other hand, typically has priority over common stock in terms of dividend payments but usually does not provide voting rights. Par value stock refers to a type of stock that has a designated face value listed in the corporate charter, but this is not the basic form of capital stock. The corporate charter establishes the existence of the corporation and outlines its purpose and structure, but it is not a form of capital stock.

The Basic Form of Capital Stock Is