Which of the following is TRUE of common stock?

Question

Quizplus · Accepted Answer

Common stock gives the holder voting rights, which permit selection of the firm's directors. A is false, as common stock does not have any fixed payment obligation like debt. B is false, as common stock dividend payments are not fixed and can fluctuate based on the company's financial performance. D is false, as preferred stockholders have priority over common stockholders in the event of liquidation of assets.

Which of the Following Is TRUE of Common Stock