Which of the Following Is Not True of Common Stock

question 49

Multiple Choice

Which of the following is not true of common stock?

• A) Common stock represents partial ownership in the firm.
• B) Common stock is riskier than preferred stock.
• C) Investors in common stock are given voting rights.
• D) Investors in common stock are guaranteed a dividend.

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Definitions:

Motivated Cognition

The influence of desires and preferences on the processing of information and decision making.

Experienced Reader

An individual who has developed advanced reading skills and is capable of comprehending and analyzing complex texts with proficiency.

Flashed Screen

A brief visual presentation used in psychological experiments to assess perception or cognitive processing.

Preattentive Process

Cognitive processes that occur without conscious awareness, before attention is focused on a specific object or activity.