Which of the following statements is NOT true about common stock?
A) Common-stock holders have the right to vote on the election of the board of directors of their company.
B) Common stock is considered to have no fixed maturity.
C) Owners of common stock are guaranteed dividend payments by the firm.
D) Common-stock holders have limited liability toward the obligations of the corporation.

Question

Quizplus · Accepted Answer

Unlike preferred stock, common stockholders are not guaranteed any dividend payments by the company. The amount and timing of dividend payments are at the discretion of the board of directors.

Which of the Following Statements Is NOT True About Common