Which Statement About "Common Shares" Is Not Correct

question 4

Multiple Choice

Which statement about "common shares" is not correct?

• A)They have the most upside potential if a company performs well.
• B)A corporation does not need to issue any class of common shares.
• C)Common shares represent the ownership interest of the equity holders.
• D)They have the most downside risk if a company does not perform well.

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Definitions:

Ball Cap

A type of hat with a rounded crown and a stiff bill projecting in front, often worn for casual occasions and sporting events.

Abstract

A brief summary of a research article, thesis, review, or other long report on a subject or project.

Concrete

Existing in a material or physical form; not abstract.

Concept

An abstract idea or a mental symbol that represents some aspect of the world, often forming the basis of thought.