Which of the Following Types of Stock Is Considered Least

question 48

Multiple Choice

Which of the following types of stock is considered least risky for investors?

• A)common stock
• B)par value stock
• C)no-par stock
• D)preferred stock

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Definitions:

Costs

The expense incurred in the production of goods or services or in the undertaking of any activity.

Price-Taker Firm

A company that must accept the prevailing prices in the market of its products because its own activity does not affect market prices.

Short-Run Losses

Financial deficits that occur within a brief period and are typically seen as part of the normal business cycle or due to temporary challenges.

Fixed Cost

Expenses that do not change with the level of production or output within a certain range or period.