Common stock is the last stock in line for any corporate payouts,including dividends and liquidation payments.

Question

Quizplus · Accepted Answer

Common stockholders are considered residual owners of a company and are only entitled to receive dividends and liquidation payments after all other obligations have been met, such as debts and preferred stock payouts. This means they are the last in line for any corporate payouts.

Common Stock Is the Last Stock in Line for Any