When a company issues common stock, it gives cash to its owners in exchange for stock is False Option(b) is correct. Since common stock is more presented to the dangers of the business than bonds or favored stock, it offers a more prominent potential for capital appreciation.
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What is a Common stock?</h3>
Common stock is a type of corporate value possession, a kind of safety. The terms casting a ballot offer and conventional offer are likewise utilized regularly beyond the US.
They are known as value offers or standard offers in the UK and other Commonwealth domains. This sort of offer gives the stockholder the option to partake in the benefits of the organization, and to decide on issues of corporate approach and the arrangement of the individuals from the governing body.
The proprietors of common stock own no specific resources of the organization, which have a place with every one of the investors in common.
A partnership might give both standard and inclination shares, in which case the inclination investors have need to get profits. In case of liquidation, standard investors get any leftover supports after bondholders, lenders (counting representatives), and inclination investors are paid.
At the point when the liquidation occurs through insolvency, the conventional investors don't ordinarily get anything.
Therefore Option(b) is correct.
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