Common stockholders
A)upon dissolution are paid the same amount as all creditors.
B)must purchase all shares directly from the issuing organization.
C)purchase stock certificates at par value.
D)have a claim on whatever is left over after all other claimants have been paid upon liquidation.
E)are also members of the New York Stock Exchange after the purchase of the stock.

Question

Quizplus · Accepted Answer

Common stockholders have a residual claim on the assets of the company, which means that they will be paid only after all other creditors, bondholders, and preferred stockholders have been paid in case of liquidation or dissolution. Therefore, option D is correct. Option A is incorrect because creditors have a higher priority than common stockholders. Option B is incorrect because common stock can be purchased from a broker or other investors, not just from the issuing organization. Option C is incorrect because par value is an arbitrary value assigned to common stock and does not represent the true market value or price of the stock. Option E is incorrect because ownership of common stock does not automatically make someone a member of the New York Stock Exchange.

Common Stockholders