Which of the following is true regarding common stock and preferred stock?
A) Preferred stock is rarely issued.
B) Common stock is rarely issued.
C) Common stock is issued more broadly than preferred stock.
D) Preferred stock is issued more broadly than common stock.
E) Common stock and preferred stock are issued in the same amount.

Question

Quizplus · Accepted Answer

Common stock is generally issued more broadly than preferred stock. Preferred stock is typically issued to specific investors, such as institutional investors or venture capitalists, while common stock is available to the general public through stock exchanges.

Which of the Following Is True Regarding Common Stock and Preferred