Which of the following is NOT a characteristic of common stock?
A) It has no maturity date.
B) It is considered a permanent form of long-term financing.
C) It has claims on assets prior to those of preferred stock.
D) It is a residual form of ownership.

Question

Quizplus · Accepted Answer

Common stock generally has a lower claim on assets compared to preferred stock. Preferred stock is considered higher in the capital structure and has a senior claim on assets compared to common stock.

Which of the Following Is NOT a Characteristic of Common