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

Question

Quizplus · Accepted Answer

Common stockholders typically expect to earn a return on their investment through receiving dividends, which are periodic payments that are not fixed or guaranteed. Semiannual interest and annual interest are typically associated with debt investments, while fixed periodic dividends are more commonly associated with preferred stock investments rather than common stock.

Common Stockholders Expect to Earn a Return by Receiving