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

Question

Quizplus · Accepted Answer

Only common stock represents a residual ownership interest in the issuer, meaning that the stockholders have a claim on the earnings and assets of the company after all other obligations (debt, preferred stock dividends) have been paid. The other options represent varying levels of debt or preferred ownership in the issuer, not ownership in the company itself.

Which One of the Following Represents a Residual Ownership Interest