Common stockholders expect to earn a return by receiving ________.
A) semiannual interest
B) fixed periodic payments
C) dividends
D) annual interest

Question

Quizplus · Accepted Answer

Common stockholders expect to earn a return by receiving dividends, which are payments made by the company out of its profits. They do not receive fixed periodic payments like bondholders and do not earn interest.

Common Stockholders Expect to Earn a Return by Receiving ________