Which one of the following represents a residual ownership interest in the issuing firm?
A)U.S. Treasury bond
B)corporate bond
C)municipal bond
D)preferred stock
E)common stock

Question

Quizplus · Accepted Answer

Common stock represents a residual ownership interest in the issuing firm, meaning that the shareholders have a claim on the company's earnings and assets after all other obligations have been met. U.S. Treasury bonds, corporate bonds, municipal bonds, and preferred stock do not represent ownership in the issuing firm, but rather represent debt or a preferred financial claim to the company's earnings.

Which One of the Following Represents a Residual Ownership Interest