Catalina owns 100 _____ stock of NxtGen Solutions,a software firm.It means that she has voting rights on company decisions at NxtGen Solutions,but only residual claims on the company's assets.
A)preferred
B)principal
C)management
D)common

Question

Quizplus · Accepted Answer

Common stock is a type of stock that represents ownership in a company and gives shareholders voting rights on company decisions. However, common stockholders are at the bottom of the hierarchy in terms of claiming ownership on the company's assets, meaning they have residual claims on company assets after all other types of stakeholders (such as bondholders and preferred stockholders) have been paid their share.

Catalina Owns 100 _____ Stock of NxtGen Solutions,a Software Firm