Asked by Sophia Chiang on Jun 04, 2024
Verified
A corporation may be authorized to issue both common and preferred stock.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividends that are paid out before common stock dividends.
Common Stock
A type of equity security that represents ownership in a corporation, with holders typically having voting rights and receiving dividends.
- Familiarize oneself with the basic attributes and concepts connected to corporate stocks.
- Understand the varieties of stock and the particular rights associated with each, with a focus on preferred and common stock.
Verified Answer
ZI
Zakiyyah IbrahimJun 05, 2024
Final Answer :
True
Explanation :
A corporation can issue both common and preferred stock. Common stock represents ownership in the company and typically carries voting rights, while preferred stock represents a class of ownership that typically has priority over common stock in terms of dividends and liquidation proceeds.
Learning Objectives
- Familiarize oneself with the basic attributes and concepts connected to corporate stocks.
- Understand the varieties of stock and the particular rights associated with each, with a focus on preferred and common stock.
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