Which of the following is an accurate statement?
A) Owning common stock is less risky than owning real estate.
B) In times of rising inflation, it is safer to own bonds than common stock.
C) Owning common stock provides the investor with a share of the firm's earnings and potential dividends.
D) Owning preferred stock is more risky than owning common stock since the investor has voting rights with common stock and it stands before preferred stock in the event of bankruptcy.

Question

Quizplus · Accepted Answer

Owning common stock indeed gives the investor a share in the company's earnings and the potential to receive dividends. This is a fundamental principle of equity investment, where common shareholders benefit from the company's profitability through dividends and appreciation of stock value.

Which of the Following Is an Accurate Statement