Which of the following is not a defining feature of common stock?
A)a residual claim on assets
B)voting rights
C)a residual claim on cash flows
D)a fixed return

Question

Quizplus · Accepted Answer

Common stock does not have a fixed return. Instead, the return is variable and dependent on the performance of the company, making it a more risky investment compared to bonds or preferred stock. The other choices (A, B, and C) are defining features of common stock.

Which of the Following Is Not a Defining Feature of Common