Investment VehiclesQuestion 76 of 100
Common stock represents:
a.A creditor claim with fixed interest
b.A guaranteed dividend obligation
c.An ownership equity interest with voting rights and residual claims
d.A short-term money market instrument
Explanation
Common stock is an equity ownership interest granting voting rights and a residual claim on assets and earnings after creditors and preferred holders. Dividends are not guaranteed. Shareholders participate in growth but bear the greatest risk in liquidation.
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