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 issues more broadly than common stock.
E) Common stock and preferred stock are issued in the same amount.

Question

Quizplus · Accepted Answer

Common stock is typically issued more broadly than preferred stock. Common stock represents ownership in a company and provides voting rights to shareholders, which makes it a popular option for investors. Preferred stock, on the other hand, usually offers a fixed dividend and has less voting power, which makes it less common.

Which of the Following Is True Regarding Common Stock and Preferred