Question

Which of the following is not one of the different classes of stocks A. Growth stock B. Preferred Stock C. Common stock CSR

Answer 1

Answer:

A. Growth Stock

Explanation:

Stocks are divided into classes based upon their features with respect to the rights they carry. Usually stocks are of two classes:

1. Common Stock
2. Preferred Stock

While the former carry voting rights and avail dividends as per the profitability of the company, the latter carry preferential rights with respect to principal repayment in the event of winding up apart from carrying a fixed rate of dividend which must be paid periodically.

Growth Stocks refer to those stocks which yield higher rate of growth than average market rate but don't usually carry a right to dividend. Growth stocks relate to capital appreciation.