Which of the Following Is Not a Characteristic of Common

question 170

Multiple Choice

Which of the following is not a characteristic of common stock?

• A) Shares can be sold for a capital gain if the price of the stock increases.
• B) The firm has no legal obligation to pay dividends to stockholders.
• C) An increase or decrease in the market value of the stock will have a corresponding effect on the value of the investment.
• D) Each share of stock represents debt for the corporation.
• E) Cash dividends are generally paid on a quarterly basis.

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