A corporation selling stock is obligated to:
A)guarantee the shareholders' investment.
B)repay money obtained from the sale of that stock.
C)repurchase shares of stock at a later date.
D)pay dividends to the common shareholders.
E)pay dividends to preferred stockholders before common stockholders.

Question

Quizplus · Accepted Answer

Corporations are not obligated to guarantee investments, repay the money obtained from stock sales, repurchase shares, or pay dividends to common shareholders. However, they are typically required to pay dividends to preferred stockholders before any dividends can be paid to common stockholders, as preferred stock often comes with a fixed dividend that must be paid out before any dividends can be distributed to common stockholders.

A Corporation Selling Stock Is Obligated To