Vidyalelo
Management · Q592

International Finance and Treasury

Graduate and Post Graduate · Management · question 592

Q592

Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as

A.
characteristics of fundamental stock
B.
characteristics of claimed stock
C.
characteristics of common stock
Answer
D.
characteristics of preferred stock

Answer: Option C

Solution

Answer: Option C
Solution:
Residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as characteristics of common stock. Common stock is a security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.