If a corporation has only one class of stock, it is understood to be:
A) preferred stock.
B) common stock.
C) contributory stock.
D) equity stock.

Question

Quizplus · Accepted Answer

If a corporation has only one class of stock, it is understood to be common stock. Preferred stock is a separate class of stock that provides its holders with different rights and privileges than common stock. Contributory stock and equity stock are not commonly used terms in the context of corporate stock.

If a Corporation Has Only One Class of Stock, It