All of the Following Statements About Common Stock Are Correct

question 78

Multiple Choice

All of the following statements about common stock are correct EXCEPT _____.

• A) common stock is a variable income security
• B) common stock prices fluctuate more than bonds
• C) common stock is callable
• D) common stockholders have preemptive rights

---

Definitions:

Maintenance

Maintenance involves the actions taken to keep equipment, buildings, or software operating efficiently or to repair it to optimal functioning state.

Full Amortization

A loan repayment plan in which regular payments are made over the loan term, completely paying off both interest and principal by the end.

Penalties

Financial charges or other forms of punishment imposed on an entity for breaking rules, regulations, or agreements.

Synthetic Lease

A financing arrangement that combines elements of both an operating lease and a capital lease, often for tax or balance sheet management.