Which of the following is not a characteristic of common stock?
A. Shares can be sold for a capital gain if the price of the stock increases.
B. The firm has no legal obligation to pay dividends to stockholders.
C. An increase or decrease in the market value of the stock will have a corresponding effect on the value of the investment.
D. Each share of stock represents debt for the corporation.
E. Cash dividends are generally paid on a quarterly basis.
Answer: D
You might also like to view...
What are the two types of rewards that salespeople can earn? Give two examples of each.
What will be an ideal response?
Authentic leadership focuses on ______.
A. followers first B. leadership outcomes C. leadership for change D. leadership that is genuine
Aparty can be directly prosecuted for violating an administrative agency'sinterpretive rule or guidance document
Indicate whether the statement is true or false
In his will, Terrence leaves $10,000 to each of his three children. However, after Terrence dies and all his debts are paid, there is only $9,000 left in his estate. Each child will receive A) $10,000
B) $9,000. C) $3,000. D) 0.