When all of the authorized shares have the same rights and characteristics,the stock is called
A)Preferred stock.
B)Common stock.
C)Par value stock.
D)Stated value stock.
E)No-par value stock.

Question

Quizplus · Accepted Answer

Common stock is a type of stock where all authorized shares have the same rights and characteristics. This means that each share has an equal claim on the company's assets and earnings, and each share carries one vote in corporate decisions. Preferred stock, on the other hand, has different rights and characteristics, such as priority in dividend payments and no voting rights. Par value stock has a fixed value assigned to each share, while stated value stock has a value set by the company. No-par value stock has no assigned value but instead has a stated value per share assigned by the company, making it different from common stock.

When All of the Authorized Shares Have the Same Rights