A corporation selling stock is obligated to
A)guarantee your investment.
B)repay money obtained from the sale of stock.
C)repurchase shares of stock at a later date.
D)pay dividends to preferred stockholders before dividends are paid to common stockholders.
E)pay dividends.

Question

Quizplus · Accepted Answer

Corporations are not obligated to guarantee investments, repay money obtained from stock sales, or repurchase shares at a later date. However, they are required to pay dividends to preferred stockholders before any dividends can be paid to common stockholders, as preferred stock typically comes with a fixed dividend that takes precedence over common stock dividends.

A Corporation Selling Stock Is Obligated to