Question

Which of the following statements is NOT true about common stock?

A) Common-stock holders have the right to vote on the election of the board of directors of their company.
B) Common stock is considered to have no fixed maturity.
C) Owners of common stock are guaranteed dividend payments by the firm.
D) Common-stock holders have limited liability toward the obligations of the corporation.

Answer 1

c. Common stockholders are not guaranteed dividend payments by the firm.

Step-by-step explanation:

Out of the given statements, the one that is NOT true about common stock is C) Owners of common stock are guaranteed dividend payments by the firm.

Dividends are payments made by a company to its shareholders as a portion of its profits. While common stockholders may receive dividend payments, there is no guarantee as dividend payments are determined by the company's financial performance. The amount and frequency of dividend payments can vary and are not guaranteed.