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Allison Holds Stock in CTC Drugs, a Leading Pharmaceutical Company

Question 56

Multiple Choice

Allison holds stock in CTC Drugs, a leading pharmaceutical company. In 2015, Allison traded her stock for another type of stock that granted her the right to vote and the right to participate in income through dividends. Which class of stock did Allison own initially?


A) cumulative preferred stock
B) participating preferred stock
C) convertible stock
D) common stock

Correct Answer:

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