Unlike bonds or preferred shares,common equity does NOT have any similar "guarantee" of returns.Rather,common stockholders are residual claimants.

Name: Unlike bonds or preferred shares,common equity does NOT have any similar "guarantee" of returns.Rather,common stockholders are residual claimants.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common equity does not have any guaranteed return, and stockholders only receive residual claims on the company's earnings after all other obligations have been paid.

Unlike Bonds or Preferred Shares,common Equity Does NOT Have Any