Common stock is the principal way that corporations raise ________.
A) short-term debt
B) foreign exchange
C) long-term debt
D) equity capital

Question

Quizplus · Accepted Answer

Common stock represents ownership in a corporation and is typically issued to raise long-term equity capital. This means that investors are buying a portion of the company and expecting to share in its future profits and potential for growth. Common stock does not represent short-term debt, foreign exchange, or long-term debt.

Common Stock Is the Principal Way That Corporations Raise ________