Which One of the Following Statements About Common Stock Is

question 80

Multiple Choice

Which one of the following statements about common stock is correct?

• A) Each share of stock has a specified maturity date.
• B) Common stock gives stockholders first title to a share of the company's earnings, prior to other corporate obligations.
• C) Common stock typically provides higher levels of current income than do similar grade corporate bonds.
• D) Each share of common stock of a given class entitles the holder to an equal ownership position and an equal vote in the corporation.

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Definitions:

Social Responsibility

The idea that businesses should balance profit-making activities with activities that benefit society; encompasses environmental stewardship, ethical labor practices, and philanthropy.

Innovation

The introduction of new ideas, products, or methods, leading to significant changes or improvements in a particular field.

Education

The process of receiving or giving systematic instruction, especially at a school or university.

Securities and Exchange Commission

A U.S. federal agency responsible for regulating the securities industry, enforcing federal securities laws and regulating the stock and options exchanges.