Question

When all authorized shares of a corporation’s stock have the same rights and characteristics, the stock is called: Multiple Choice Preferred stock. Common stock. Par value stock. Stated value stock. No-par value stock.

Answer 1

When all authorized shares of a corporation’s stock have the same rights and characteristics, the stock is called a common stock.

What is a common stock?

A common stock gives the holder ownership rights in the public company that issues the stock. Common stocks are issued to raise capital for business operations.

Common stocks gives the holder to receive dividend and it grants the holder voting rights.

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