Question

Darby, Inc. has 25,000 shares of stock issued and outstanding. All the shares of stock have the same rights and characteristics; therefore, the stock is c

Answer 1

Answer:

Common stock

Explanation:

There are basically two types of stock:

1. Common stock: It shows a ownership in a business organization. According to the ownership criteria, the dividend is paid to the shareholders. They have the same rights and characteristics plus they have the right of voting rights

2. Preferred stock: It shows a ownership in a business organization. According to the ownership criteria, the dividend is paid to the shareholders. They do not have the voting rights plus the dividend is paid first to the preferred stock, then equity stockholders